What is defeasance?
Defeasance is the process by which a borrower substitutes income-producing collateral for a piece of real property to facilitate the removal of an existing lien without paying-off the existing note.
How much does a defeasance cost?
One of the quickest ways to estimate the costs of a defeasance is by using our calculator. However, our analysts can run a more accurate estimation by using the same trading systems utilized by banks in an actual defeasance closing. Please contact Medalist Defeasance at (704) 887-9880 for a complete report of the prospective defeasance costs.
How long does it take to defease a loan?
A typical defeasance process will take about 30 days, though we have completed closings sooner. We recommend beginning the process two months before the perspective closing date in order to ensure the smoothest closing.
Does my loan require a defeasance?
Many commercial real estate loans have a defeasance clause that can be found in the loan documents. We are happy to examine these documents free of charge and confirm whether your loan has a defeasance requirement.