What is Receivership in Real Estate?

What is Receivership in Real Estate?

Ask and You Shall Receive? Probably Not. If you’re looking to buy a a new construction condo right now in Los Angeles, you’ve probably come across this term and wondered what it means for the property and for they buyer. In a nutshell, Receivership means that the completed building/partially completed building was on its way to bankruptcy ( a lot of developers bought before the bubble burst and are underwater just like so many homeowners today) and instead of completely foreclosing on it and owning it outright the way it usually occurs with homes, the lender decides to take another route to limit its liability – because these buildings carry greater burdens then just a single family home typically does. You see, if the building is partially completed, the bank would have to decide if should be completed and then have to deal with managing construction. It would also be responsible for taxes, buyers, maintenance , etc. So in order to reduce the exposure of liability for the bank and the costs associated with managing a distressed complex, a receiver is appointed by the court as a neutral third party. Now the receiver is in charge of managing the property so the the bank is able to focus on its expertise. The receiver is able to sell the property “as is” or even hold on to the property in the case its value could increase. Receivership also keeps the original borrower from further reducing the property value that could arise from things deferred maintenance – though it doesn’t remove the original liability from them. So ultimately, the receiver is...

Buying a Bank Owned Property – Should You or Shouldn’t You?

Oh, the controversy that surrounds Bank Owned Properties (otherwise known as REOs, distressed property or foreclosures). At the point of foreclosure, you would think the transaction might be simple, but usually what you think should be simple, usually is not. Controversy has to be expected when a bank has to foreclose on unhappy people who couldn’t (or today, may have chose not to) keep up with their loan payments and have to be evicted from their homes. And then the bank becomes the property owner (banks owning properties — eek) and attempts to resell it to someone very happy because hypothetically, they should be purchasing it for a price well below market value. And I haven’t even touched on the paperwork and back and forth that goes on during these transactions, but my point is these things are steeped in controversy inherently – at every single turn in fact. Throw in the minor (sense my sarcasm) fact that there are hundreds of thousands of these foreclosures throughout the country and the potential for controversy, torment, confusion and fraud grow. Now since this post is all about whether you should or shouldn’t buy one of these properties, I won’t even go into the upheaval that has caused banks to put the total brakes on foreclosures. It’s just another sign that banks really shouldn’t be homeowners – but we’re here – so now lets make the best of it. So what’s the best of it? Buying a foreclosed home. Period. What do I mean by that? Well, if you’ve heard of a short sale you might understand. The banks should love...

Baked Goods In Your Hood – My Top 10 Bakeries in LA

Did you watch Top Chef: Just Desserts? I have and it has really elevated my already insatiable yearning for baked goods. I shore love me some baked goods and there are so many great places to buy baked goods throughout the Los Angeles Area. As a real estate agent, you drive around the city a lot so it’s important to have to go-to places everywhere, though if I ate this stuff as much as I thought about it, let’s just say my jeans would be muuuuch larger. And with the holidays so close, I thought I would provide some ideas of where you could get your sweet on or you could make them yourself! Here’s a round-up of my favorite places in no particular order. Now when you’re thinking about which community you want to live in, this might help to sway you towards one or another. I know it would me… Susina: This is a bakery and cafe right off of Beverly and La Brea. They have the best little baby cookies which are great if you don’t want to over-indulge. You can get a 1/4 pound for $5 which is a great little gift for someone special. A lot of people use Susina as a place to hang out with their computer – you can sneak the Wifi from Starbucks next door. Maison du Pain: Maison du Pain is in a kind odd location right off Pico in the PicFair District where there seems to be a lot of car repair places. This street has been slowing evolving and I would say that Maison du Pain is...