Motion to Sequester Rents: A Great Early Legal Maneuver

If you are an Asset Manager, Loan Portfolio Manager, Private Lender, or Investor with a non-performing property, this is how the story normally goes. You endure months of requests, conversations, strained negotiations, and forbearances. When you find yourself pleading or insisting with your borrower in order to see any sort of return on your investment, you realize that this tactic of financial loss is not an effective solution. You finally take legal action.

After you hire a lawyer and file an action against your borrower, the world of legal maneuverings begin. We routinely hear the same claims from borrowers all the time: they are planning to file bankruptcy, they question the loan ownership, they request a further modification. Too often these are tactics designed to lull you into a place of inaction and prolong you from taking any further action, for all intents and purposes returning you to the same place you had been before hiring a lawyer.

At the Reyes Law Group, we have developed a procedure and strategy over time for more immediate help in this process. Early on, we file what is called a Motion to Sequester Rents. In that effort, we are looking to ask the Court to issue an Order directing the borrower to turn over all their rents: past, present, and future. This is one of the best legal maneuvers to help you secure immediate funds.

Filing a Motion to Sequester Rents also has another advantage: your rent funds are the same funds your borrowers are using against you to defend against your legal action. A Motion to Sequester Rents helps you cut off the financing and is an effective early maneuver to both practically and legally “even” the playing field after months of surviving without any payments from your non-performing property.

Also note, that you must have made a written request to the borrowers for the rent prior to filing a Motion to Sequester Rents. This should not be an issue, however, since if you are in Court you have undoubtedly already provided a written request for the rent. In Florida, a Motion to Sequester Rents can be filed individually. It does not have to be tied to a request to Appoint a Receiver or any other related action.

If you are an Asset Manager, Loan Portfolio Manager, Private Lender, or Investor anywhere in the country and looking for help with a non-performing Florida commercial real estate property, contact the Reyes Law Group today. We currently serve our clients statewide in Florida.  At the Reyes Law Group, we not only defend your investment, but preserve your rights and value your trust… every single day!

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Reyes Law Group

Reyes Law Group represents clients in a multi-disciplinary legal practice involving real estate transactions and litigation with a “footprint” that covers the State of Florida. Over the firm’s first 10 years, Reyes Law Group has closed over $100M in commercial closings, representing buyers and sellers in contract negotiations, due diligence, and the related title review and policy issuance related to closings. In litigation, the firm has commercial litigation experience focused on prosecuting or defending claims such as breach of contracts, partition actions, trade secret violations, and breach of non-competes. However, our firm’s MAIN FOCUS is assisting asset and loan portfolio managers, investors and private lenders with a “ 4-PILLAR APPROACH” to the legal challenges they face with non-performing assets: 1) LOAN WORKOUTS; 2) COMMERCIAL FORECLOSURES (across the State of Florida); 3) COMMERCIAL EVICTIONS; and 4) REO COMMERCIAL CLOSINGS.30+ years’ legal experience means - WE CAN HELP!
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