Stupid ignorant question, I'm a bit confused over what a receiver is and does, if a bank appoints a receiver on a property, does the receiver have the legal weight to take the property ? What's their role, don't they need a court order to take land ?
There's a clause in your mortgage agreement which allows the Bank to appoint a Receiver. He will take over the rental income and can put it up for sale in the long run if the bank wishes. As for when they get a buyer - I'm not sure what happens here. Presumably they will need an order for repossession at that stage.
Just to clarify. While a lot of mortgage agreements have a clause in the mortgage agreement there are quite a number that do not have. You need to read the particular mortgage agreement to be sure or get an advisor to do so on your behalf if you feel you might not understand it.
The mortgagee is the lender. perhaps you mean the mortgagor! A receiver acts as agent for the mortgagee and can reposess and sell the property without any need for documentation other than the original loan agreement which gives him this right!
The mortgagee is the lender. perhaps you mean the mortgagor! A receiver acts as agent for the mortgagee and can reposess and sell the property without any need for documentation other than the original loan agreement which gives him this right!