Receivership in Foreclosure Law and Legal Definition

Receivership in foreclosure is a receivership in an action for the foreclosure of a mortgage or lien. It is a proceeding in aid of an action for the foreclosure of a mortgage on real estate, wherein a receiver is appointed. The receiver will be appointed to take possession of the mortgaged property, pay the expenses of the receivership, insurance, and taxes, account for the surplus proceeds, and turn them over to the court for application on the mortgage debt or, if not required for satisfaction thereof, to the mortgagor.