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).
PHASE I
- 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
PHASE II
- 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
PHASE III
- 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