Defeasance
Curious how much a defeasance would cost? Use our calculator for a quick estimate.
Proactive Preservation of Value.
Adaptability is critical when it comes to complex real estate transactions. Having financial structuring options and the ability to exercise them when needed provides confidence to build the right deals and unlock true potential.
Trimont’s Defeasance services facilitate the substitution of secured real estate collateral with government securities.
Our Difference
| Experience | With 20+ years of defeasance specialization that includes 13,500+ successful transactions totaling over USD 170 billion, our team has proven capabilities and an exceptional track record. |
| Ease | Equipped to manage multiple roles and responsibilities in the workflow, we simplify your experience, remove complexity, and ensure a seamless process from start to finish. |
| Efficiency | Our strong, multi-decade vendor relationships combined with our real-time complimentary pricing calculator help us negotiate favorable terms generating additional savings. |
Our Defeasance Services
- Help borrowers understand the defeasance process, costs, and timing while providing strategic guidance to optimize financial outcomes and minimize disruptions.
- Source, structure, and optimize the government securities portfolio to precisely match the loan’s remaining payment schedule, ensuring seamless cash flow coverage.
- Manage communications and workflow between lenders, legal teams, accountants, rating agencies, and other stakeholders to facilitate a smooth transaction.
- Oversee the loan payoff steps to secure compliance with lender requirements for releasing the property from the loan obligation and transitioning ownership smoothly.
- Establish, manage and administer escrow, including a dedicated account to facilitate timely and accurate payments from the replacement collateral throughout the defeasance period.
- Manage regulatory and compliance obligations, including transaction verification and alignment with IRS, SEC, and other relevant regulatory guidelines to mitigate risks.
Defeasance Calculator
Use our calculator for a complimentary estimate.
What is Defeasance?
Defeasance is the process by which the real estate collateral securing a mortgage loan is replaced by government securities in order to release the real estate collateral, while keeping the payment stream for the mortgage loan intact.
The release of the original collateral allows the borrower to sell or refinance the real estate.