Florida Receiver

Receiverships of income-producing properties continue to be used, often at the request of a foreclosing mortgagee. Mortgagees may be motivated to seek the appointment of a receiver for a variety of reasons. If the property generates rental income, the foreclosing mortgagee may seek a receivership to prevent the rents from being diverted to the owner or other creditors. In addition, a mortgagee that takes control of the collateral is exposed to liability, and the appointment of a receiver protects the mortgagee from that exposure. A mortgagee may wish to avoid taking possession of the property because of the potential liability for environmental contamination on the property. Also, authorizing a receiver to sell the mortgaged property may result in a fair market sale price, as opposed to a distress sale at foreclosure.