Receiverships can be unpredictable, said Laura Lonergan Taylor, as there is no uniform set of rules. Do you have the right under applicable law to appoint a receiver? If so, what can the receiver be empowered to do?

• Consider your form of order. “Think of it like your wish list,” said Taylor. “Throw everything in there that you could possibly ever want out of the receivership.” It’s the key to the scope of the receiver’s powers. Make sure to propose a receiver by name, even though it is ultimately the court’s decision who will serve as receiver.
• Pick the right receiver. Does your receiver have experience managing properties of a similar size and type to the asset at issue? Talk to your proposed receiver before you submit your form of order to the court to make sure your proposed receiver can deliver what you need if appointed.
• Be precise about collection and use of the income stream. Is there a cap on the receiver’s expenditures after which lender consent is required? Can the receiver hire outside counsel or other professionals whose services will be compensated from receivership assets?
• If you have distressed assets in more than one state, think about utilizing federal court for your foreclosure action. The federal court’s jurisdiction could extend to receiverships across state lines.
• Give the receiver the power to market and sell the property. “The lender is more likely to realize a greater price from a receiver sale than from credit bidding the property at sheriff’s sale and then having to resell the property,” noted Taylor. “You avoid all the carrying costs after taking the property back at sheriff’s sale and, of course, transfer taxes when you ultimately resell it.”