Lenders Should Avail themselves of Insulation From Liability

Lenders, whether private or public, making repossession would be well advised to petition the court for a rent receiver in the event the lender seeks to re-enter and possess the property prior to foreclosure sale. A lender seeking to obtain rental income from a property, or simple protect the property from further disrepair through occupancy, becomes a mortgagee in possession and subject to full liability in the event a lawsuit arises as a result anyone suffering damages through the use, occupancy or permission to enter the property. A court appointed rent receiver acts as agent on behalf of the lender without subjecting the lender to liability for personal injury victims, building code violations and the like. The rent receiver is also insulated from personal liability and only subject to suit in their capacity as rent receiver. The extent of damages obtainable from either the lender or rent receiver is the sum available to the rent receiver, or lender, through collection of rental income or other income received from operation of the property. If you are foreclosing on a property or facing foreclosure, you should seek experienced legal counsel immediately in order to protect your rights. For more information on foreclosure, bankruptcy or other consumer debt related matters in New Jersey visit TheNJBankruptcyAttorney.com. This blog is for informational purposes only and in no way intended to replace the advice of an attorney regarding your specific matter.