Recently, the staff of BloggerVenue spoke with Illinois Receiver Arthur van der Vant, who says that not every family in foreclosure wants to stay in their current residence. Read on to see how this real estate expert believes that liquidation options in the foreclosure process can benefit both the buyer and the mortgage holder.
BloggerVenue: In Cook County, Illinois it takes approximately one and a half years for an average foreclosure case to go through. Is that a standard timeframe?
Arthur van der Vant: Some foreclosure cases continue for 2 to 3 years while new foreclosures keep piling up, to the point that the volume of cases disrupts the court system.
BloggerVenue: We understand that while new legislation is introduced to keep people in their homes, not every property owner in foreclosure wants to stay. Is this true?
Arthur van der Vant: Many would prefer to sell their real estate if they could. I would like to share with you an idea that came to me, which has to do with more efficient processing and resolution of foreclosure lawsuits in cases where property owners do not want to keep the mortgaged real estate.
BloggerVenue: Yes, please do.
Arthur van der Vant: As we all know, due to the economic circumstances, unemployment, and struggling real estate markets, the amount of foreclosure filings have already taken a high toll on the judicial system, and the elevated amount of foreclosure filings is expected to continue in years to come.
BloggerVenue: You’re absolutely right about that. Please continue.
Arthur van der Vant: My idea is simple and cost effective. It has to do with setting up two distinctively different liquidation opportunities within the same foreclosure proceeding.
BloggerVenue: Doesn’t Illinois currently have a judicial sale at the conclusion of foreclosure?
Arthur van der Vant: Yes, but what I am suggesting is adding another Court supervised sale opportunity called “Receiver’s Sale.” This would be for those cases where the property owner agrees to liquidate the mortgaged real estate.
BloggerVenue: Why and how?
Arthur van der Vant: Traditionally under 735ILCS 5, Section 15-1704, the role of a Receiver is that of “status quo maintainer.” He or she holds custody and right of possession and control of a commercial income producing property, but not title.
BloggerVenue: But Receivers are not typically appointed for owner-occupied residential properties, right?
Arthur van der Vant: Correct. They are traditionally viewed as an unnecessary expense. But what has not been realized is that a Receiver could serve a different role and be an added value to all cases where the borrower does not want to keep the mortgaged real estate.
BloggerVenue: So this is for a situation where a buyer would rather sell the property but cannot. How often is this the case?
Arthur van der Vant: I do not know of anybody holding statistical data on how many defendants in foreclosure want to sell mortgaged real estate versus those who want to keep their property; but based on my experience, I would argue that about half (50%) of defendants in foreclosure want to sell the real estate.
BloggerVenue: That’s certainly a staggering figure.
Arthur van der Vant: I have seen countless situations in which residential homeowners have appeared in Court and said, “Your Honor we have listed the property with a real estate broker…” or “Judge we have a buyer, but we need a short-sale to be approved by the lender…”
BloggerVenue: Do you have any idea how many foreclosure sales take place per year?
Arthur van der Vant: I believe that in Cook County alone there were approximately 70,550 mortgage foreclosure cases pending at the end of 2010.
BloggerVenue: And if only half of those were able to sell that would certainly help to make the real estate market flow…
Arthur van der Vant: Yes, certainly.
BloggerVenue: What about short sales?
Arthur van der Vant: Lenders take months to process short sales and only a small percentage of them get approved, keeping Courts congested.
BloggerVenue: Do any of these houses go on the market?
Arthur van der Vant: They do, but many times even if a realtor takes on a listing they cannot sell their inventory.
BloggerVenue: So you believe that by utilizing the Receiver’s Sale method, the control over the resolution of the foreclosure case could shift from borrowers (who are unable to sell their home) and their realtors to the Court and Judges?
Arthur van der Vant: Yes, precisely.
Arthur van der Vant is a receiver and assignee based in Cook County, Illinois. He is an expert in real estate and corporate turnaround management with over 10,000 projects to his credit. As a member of several professional organizations, including the Turnaround Management Association and the National Association of Bankruptcy Trustees, Arthur van der Vant is up to date on every aspect of his profession. He is one of only a handful of Certified Commercial Investment Members (CCIM), and has trained at the World Bank Headquarters in Washington DC. Currently, Arthur van der Vant practices of his firm, Illinois Receiver.
For more information or to contact Arthur van der Vant, please call 800-496-9107
2714 N. Ashland Ave. FL1 | Chicago, IL 60614- 1106 | United States