WHAT IS A RECEIVER AND WHO CAN SERVE?
In Texas, a Receiver is an individual or entity appointed by a court to take possession and control of property or assets that are subject to a legal dispute or in need of protection. The Court typically appoints a Receiver to step-in and take over the distribution of the assets according to the Court's instructions.
The individual appointed by the Court is someone with no personal or other vested interest in the outcome. Typically, any interested party with a vested interest in the proceeding, such as a seller, could request a Receiver be appointed. As noted further on, a spouse in a divorce case could request the Court to appoint a Receiver if there is evidence that some adverse action or situation is about to occur.
HOW & WHY IS A RECEIVER APPOINTED
FOR REAL ESTATE TRANSACTIONS?
The appointment of a Receiver is typically done to preserve and manage the real estate during the pendency of a legal proceeding, such as divorce, foreclosure or probate. The role of a receiver in Texas involves hiring a qualified Realtor to handle the sale of the property.
After you file for divorce in Texas, the court can appoint a Receiver to step in and take control of your property if serious snags occur. This might be the case if the mortgage is going unpaid, or if you do anything else that seriously mismanages your the marital home.
The idea is to preserve whatever is at risk during the divorce proceedings. If the judge doesn’t order receivership on his own, either you or your spouse can file a motion with the court to bring a problem to his attention, asking that the judge to appoint a receiver. Receivership can be ordered at any time during the divorce proceedings, but the court typically needs some evidence that something dire is about to occur if the judge doesn’t take immediate action.
WHAT HAPPENS NEXT?
Receivership can last as long as is necessary to safeguard marital finances or assets while your divorce progresses. It doesn’t last beyond your divorce but terminates when a distribution of marital property is made in a final Dissolution of Marriage decree. The appointment of a Receiver doesn’t affect or slow down the process in any respect – all other aspects of your divorce proceed as though a Receiver weren’t in place.
When a foreclosure notice is received, Geni Manning, Certified Short Sale & Foreclosure Expert (SFR) is able to sale the property quickly or pull it from Foreclosure into a Short Sale to help from further dept occurring and help spouses credit ratings. She is available to assist a judge or client to act as a Receiver.