Short answer. Possibly. The rule has a paragraph written for foreclosure cases. A receiver may be appointed where the property is in danger of being wasted or materially injured and its value is probably insufficient to discharge the mortgage debt, or where the mortgage contract so stipulates.
What the law says
(b) When it appears in an action by the mortgagee for the foreclosure of a mortgage that the property is in danger of being wasted or dissipated or materially injured, and that its value is probably insufficient to discharge the mortgage debt, or that the parties have so stipulated in the contract of mortgage
Rule 59, Section 1 — Appointment of receiver. Read the full provision →
A ground written specifically for the foreclosing mortgagee
Receivership is often described in general terms — property in danger, a party with an interest in it. But the rule contains a paragraph aimed at this exact situation: an action by the mortgagee for the foreclosure of a mortgage, where the property is in danger of being wasted or dissipated or materially injured. You do not have to force your case into the general ground. There is one addressed to you.
Two conditions, joined — plus one alternative
Read the paragraph carefully, because it does more than describe deterioration. It couples the danger to the property with a second requirement: that the property's value is probably insufficient to discharge the mortgage debt. Damage alone, to a property comfortably worth more than the loan, does not meet this branch — the security still covers the debt. Then comes a separate alternative that stands on its own: that the parties have so stipulated in the contract of mortgage.
The stipulation route
That last alternative is worth checking before anything else. Where the mortgage instrument itself provides for the appointment of a receiver on foreclosure, the rule recognises the stipulation as a ground in its own right, without requiring proof that the property is deteriorating or that its value has fallen short. Many standard mortgage forms contain such a clause. Reading the instrument first can spare you an evidentiary fight you did not need to have.
How the application is made
The appointment is made on a verified application, and the rule contemplates that the court may require such other proof as it considers necessary. The application goes to the court where the action is pending. Appointing a receiver hands control of property to an officer of the court, so expect the application to be examined closely and to be supported by concrete evidence of the condition and value of the property rather than assertions about it.