Community Forum

How does one become a receiver and/or trustee?

Looking back at 27 years and 450+ cases I often wonder myself how I became a Receiver and Bankruptcy Trustee....So Here we go...
Well I suspect that everyone has a different entry point into the business so I will share mine as well as how most people might persue this path today...
I started out of survival as my largest fee management account was just posted with a foreclosure notice. Fearing losing the account I called the attorney listed on the notice and explained the reason for my call. Eventually the attorney suggested I become the Receiver as the borrower/Defendant liked how I handeled the property and at the time (still true today) the Judiciary was receptive to real estate practicioners serving as Receiver in place of the customary CPA and or Lawyer--after all who knows real estate better! I got approved as Receiver and after admitting my lack of knowledge to the court -began my duties. Soon thereafter the same asset filed for Bankruptcy protection and the same lawyers helped me throught the process to the successful appointment in my first Federal Bankruptcy Case--then it was "off to the races". I also note that the two attorneys who pointed me in the right direction both ended up serving as (one still does) Federal Bankruptcy Judges--so that may have helped later in my career-at least it did not hurt....Now -how I see current IREM types accessing this profession...
I would make contact with insolvency lawyers that represent financial institutions that hold troubled loans--A great place to find these is in researching the Superior Court--Civil Division--Law and Motion Calendars in your area. Many courtrooms are on-line. You will look for actions such as "Motion for Appointment of Receiver". The law firm and lawyer that filed the action will be named and most times the Plaintiff is the Lender that holds the troubled property- these are the parties that are nominating the receivers. You can also search the "Tentative Ruling Calendars" for the same information. In regards to Bankruptcy cases the central source Nationwide is "PACER" www.pacer.psc.uscourts.gov. Once you set up an account (cost .08 per page downloaded-no charge if less than $10.00 yr) you can view all active cases in any Federal Jurisdiction Nationwide--The nomenclature will take some getting used to but is great information.
Lastly I really press my IREM Designation, Code of Ethics and the fabulous network of IREM Professionals when submitting my Declarations on how I will handle a new case--Go for it!!!
FYI- IREM is rolling out a "Workshop in a Box" based on Power Point presentation I have put together and regularly update--check it out!
J. Benjamin McGrew CPM CCIM

Do you need a licence to become a reciever ?

I have never come across a jurisdiction that required any type of licensing to serve as a Receiver- although many times in the real estate cases the underlying tasks -such as rent collections and leasing or sales do require a license. In these cases I either hire my own management firm or hire a local ARM, CPM or AMO firm. You can't go wrong with an IREM member !

So, Mr. McGrew, How and where can I obtain bond and file an oath?...Thanks!