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Richardson "Red" Griswold of Griswold Law was nominated by an Orange County city, and appointed by the Superior Court judge under CA Health & Safety Code section 17980, et seq., to act as a receiver over a single family home that had fallen into serious disrepair with multiple and severe health and safety, building, and other municipal code violations.

Legal disputes stemming from residential real estate transactions are on the rise, largely due to the increase in short sales and foreclosures. In regards to short sales, some sellers are taking legal action against their own real estate agents, alleging that they misrepresented or failed to disclose the possible loan deficiency amount owed to a lender (usually a “2nd”) and/or tax obligations.

The National Vacant Properties Campaign held its annual conference in Cleveland, Ohio last week. There to explain the positive impact that receiverships can have on vacant/abandoned properties in cities across the nation was Mark Adams of the California Receivership Group. Mr. Adams is a friend and mentor of mine.

As foreclosures continue flowing and banks lose additional control of their REO portfolios, more and more vacant properties in substandard condition will turn up in neighborhoods within San Diego County and the nation at large. Cities within San Diego County have taken promising steps over the years to beef up code enforcement strategies and neighborhood improvement initiatives, particularly in the City of Chula Vista and the City of San Diego. Attempts to stave off vacant/substandard/nuisance properties, coupled with an aggressive penalties system, can solve half the problem. However, once the property has been identified as a "nuisance" and the fines/penalties/charges have been issued, what next? Who ensures the property will be cleaned up and brought within compliance with the applicable code? The answer: court-appointed receivership.