In mortgage remedies, what is the role of a receiver?

• A. A named individual that may take possession for protection or sale, appointed by the court
• B. A bank employee appointed for the case
• C. A mediator between parties
• D. An agent who negotiates new terms

Answer: (A)

In mortgage remedies, a receiver is an independent person brought in to take possession of the mortgaged property to protect its value and oversee its sale if needed. They are typically appointed by the court, and once in charge they manage the property—collecting rents, insuring, arranging repairs, and preserving the asset so it can be sold to repay the loan. The goal is to safeguard the secured creditor’s interest while the remedy process runs its course. This role is not a bank employee, a mediator between parties, or an agent negotiating new loan terms; the receiver’s function is to protect and realize the asset, not to bargain on terms.