The defeasance process typically takes 30-45 days to complete. It can be completed quicker in certain circumstances, but many servicers charge an additional fee for expediting a transaction. We have closed defeasances in less than a week from engagement to rating agency approval to closing, but borrowers should engage us as soon as the sale contract is signed or the lender's commitment letter is issued for a refinance. It's never too early to start discussing a future transaction with us, but 60-90 days prior to the anticipated closing date is ideal. You can engage us by signing and returning an engagement letter along with any applicable deposits.
Once engaged, we proactively manage every step of the process by:
- Providing unlimited, free defeasance cost estimates and seeking ways to save the borrower money
- Assigning a knowledgeable, responsive, experienced deal management team to the transaction and hosting the initial conference call
- Working with the borrower, borrower's counsel and the other parties to the transaction throughout the process to ensure that the various requirements in the loan servicer’s checklist are completed in a timely manner to meet the borrower’s closing deadline
- Communicating with all parties involved throughout the process and providing status reports and securities cost updates along the way
- When all defeasance checklist requirements have been completed to the satisfaction of servicer's counsel and the rating agencies, if applicable, and the borrower so directs, coordinating the 2 or 3 day closing process that includes the final structuring and purchase of the securities portfolio through the broker-dealer