Paragon Loan Advisors utilizes a proven approach for completing defeasance transactions in record time. Our specialized process is broken down into three easy-to-follow steps: Consultation (Phase I); Coordination (Phase II); and Closing (Phase III).


  • Review loan documents and advise borrower of any important provisions that will impact timing or cost
  • Prepare a reliable quote for the defeasance costs
  • Inform borrower of any servicer-specific requirements (notice periods, upfront deposits, etc.)
  • Review sample closing checklist with borrower and attorney


  • Submit borrower’s notification to appropriate servicing personnel
  • Communicate borrower’s timing requirements and any special instructions to servicer’s attorney
  • Engage third-parties including Accountant, Securities Intermediary and Successor Borrower
  • Coordinate a “kick-off” call with all deal parties to review timing and the closing checklist
  • Review status of closing checklist with servicer’s attorney and intervene with responsible parties when items are delayed
  • Provide updated quotes reflecting recent market movements


  • Review closing and funding procedures with title agent and new lender
  • Provide itemized closing statement for the defeasance costs
  • Conduct auction for purchase of the defeasance collateral
  • Monitor closing to ensure that funding delays do not threaten the closing timeline
  • Arrange for return of escrow balances to borrower