By Dennis T. Lewandowski, Bankruptcy, Creditors’ Rights & Business Restructuring

Part 3 of 4. Click here to see Part 2.

Typically, the receiver will market the property for sale using the same methods as it would for any other commercial property. It will install signage on the property, list the property with the appropriate online commercial listing services, notify local brokers, and advertise in appropriate trade presses. It may be advisable for the receiver, usually through the secured lender, to obtain an appraisal of the property to be able to establish at the sale hearing that an acceptable sale price was obtained.

Once the receiver, in consultation with the secured lender, obtains an acceptable offer for the sale of the property, a motion can be filed, often by the secured lender with the consent of the receiver, to approve the sale.

At the sale hearing, the secured creditor should be prepared to establish the various steps the receiver took to market the property and why the receiver believes the proposed sale price is fair and reasonable. If necessary, the appraisal may need to be introduced.

Special problems can arise when dealing with certain liens of the federal government. The United States should be named a party in any civil action to foreclose a mortgage or other lien upon real property on which the United States has or claims a mortgage or other lien. The Complaint must set forth with particularity the nature of the interest or lien of the United States. Also, for tax liens, the complaint must include the name and address of the taxpayer, and if a notice of tax lien was filed, the identity of the internal revenue office, and the date and place such notice of lien was filed.

Click here to see Part 4.

The contents of this publication are intended for general information only and should not be construed as legal advice or a legal opinion on specific facts and circumstances. Copyright 2024.