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Use of a Judicial Foreclosure By Grant, Candace * Candice Grant of Real Estate Receivers in Newport Beach offers the following creative approach of interest to lenders: What do you do when a real property-secured loan is non-performing and there is no equity, but the borrower has assets beyond those which secure the loan? And, to make matters more complicated, there are “issues” that make an arm’s length sale through the receivership extremely difficult, if not impossible. It may be that the best course of action for the lender is to proceed through the court system or arbitration to get a judicial foreclosure decree and seek appointment of a receiver during the litigation to manage the property and collect rents. Once the foreclosure decree is issued, the lender can get authority for the receiver to conduct the foreclosure sale. This will enable the sale to occur, while preserving the lender's ability to collect on the judgment from the defendant’s other assets. |