When a property owner is in default of its loan obligations, and a lender is concerned that the owner may not be acting in the best interests of creditors, the lender(s) may seek the Court’s appointment of a receiver to protect their interests.

A receivership action is initiated when the Court appoints a receiver at the request of the lender(s) to take control of the real estate.  The receiver acts on behalf of lenders at the specific direction of the Court.  Typical instructions to the receiver are to secure and protect the real estate, collect and account for the rents, and maintain the property while responsibly serving the tenants, if any, that may have rights of occupancy.

Ted Welter is a receiver as approved by the State of New York Unified Court System and has provided related services to other receivers on dozens of receivership actions during his career.