Benefits of Blanket Receivership
Blanket Receivership offers those responsible for the financial health of an Association a means for significantly increasing monthly cash flow in the short term and reducing unresolved debt over the long term. The most significant benefits of this program include the following:
Limited Up-Front Cost To The Association. Typically the only out of pocket expense to the Association in order to pursue Blanket Receivership is a $500.00 filing fee for Receivership Counsel. All future costs of the Blanket Receivership, including legal fees, are paid out of collected rents. All delinquent Association fees, late fees and interest are paid in full through Blanket Receivership.
Reduction in Legal Expenses. The Blanket Receivership process serves as an efficient and effective alternative to pursuing individual unit foreclosure actions. The typical legal cost of each foreclosure is approxiamtely $3,000.00 and the timeframe for completion can surpass a year. Blanket Receivership avoids these legal costs and begins to generate income immediately.
No Special Treatment for Lender Owned Delinquent Units. If a lender owned unit is delinquent, then it is subject to the Blanket Receivership Court Order. If the unit is vacant, the Blanket Receiver will take possession and lease the unit. All outstanding Association balances will be paid off by the collected rent. If a Lender wishes to sell the property, he must work with the Blanket Receiver in order to pay off all costs in full and obtain clear title.
No Special Deals To Clear Delinquent Balances. Some collections companies and/or collections attorneys will accept less than what is owed on a delinquent account in order to settle. With Blanket Receivership, settlements are not accepted because the Blanket Receiver retains leagl control of the unit.
Blanket Receivership Court Orders Are Ongoing. A Blanket Receivership Court Order applies to all units within an Association as long as the Order remains in effect. The Court Order will specify conditions that must be met in order for a unit to become a Receivership Unit. Some units may enter Receivership on day one and eventually be released once all financial obligations are met. Other units may enter Receivership 6 months after approval of the Court Order. A number of units will never enter Receivership.
Unit By Unit Accounting. JKM performs unit specific accounting. This means that each unit is responsible for its own delinquencies and specific costs.
Court Supervision. A Blanket Receiver typically submits quarterly reports to the Court regarding the status of the Blanket Receivership. JKM takes this requirement a step further and contracts for independent third-party audits of each property per calendar year. JKM also retains liability insurance and provides a bond for each receivership property.
Collection of Information on Unit Occupants. As a Blanket Receiver, JKM collects personal information on the occupants of each Receivership unit. Many unit owners bypass Association approvals or registration of unit tenants. As a result, the Association may have no record of current unit occupants, pets and vehicles.
Eviction. Although JKM attempts to work with all existing tenants of leased Receivership units, at times problematic or non-compliant tenants must be removed. JKM will obtain Writs of Possession and/or process evictions in order to ensure the collection of rents and support a safe, non-confrontational living environment.
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