Buying a Property in Receivership
While doing some due diligence on a Baltimore City property I'm looking to purchase I found that the local court has appointed a Receiver to sell the property. I'm pretty unfamiliar with the Receivership process, but from what I can gather here, it's the City's way of abating "nuisance" properties when the owners won't renovate them. The city basically seizes the asset and sells it. Pretty drastic stuff! And I need to understand it better. @Ned Carey has a couple good blog posts on his experience with receivership but I was unable to determine the outcome of his efforts.
This is an assignment deal and I haven't yet signed the assignment agreement. So I have time to make a good decision. Here is what I know:
- The court appointed a Receiver on Sept 6th, with a stay of 60 days to Nov 9th (whatever that means). No court entries on the case file on Judiciary Case Search since September.
- The property is not in particularly bad condition. Pretty standard moderate renovation. No fire damage. Roof, walls, floors are good.
- If I purchased it, the closing would likely be in mid-December.
Questions:
What ability do I have to step in as the new owner, start the reno, and get it out of Receivership?
Will a title company even insure this?
Thanks!