Support from first question to final closing
Guidance before you commit. Execution through closing. Legal coordination when you need it.
Most borrowers start with the same questions
Paragon's professionals have worked inside CMBS servicing organizations, represented servicers and borrowers as counsel, and advised borrowers through defeasance transactions.
That perspective shapes our services: helping you understand the requirements and costs before you commit, managing the transaction through closing, and supporting your counsel in completing the legal work required for the defeasance.
Paragon is the only independent defeasance consultant recommended by two of the nation's four largest CMBS servicers
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Paragon offers a single, coordinated process
Defeasance Advisory
The details matter. Minor differences in loan language, timing requirements, and servicer requirements can materially affect cost, timing, and what will be required to complete a defeasance. Our complimentary advisory service helps borrowers identify those issues early and evaluate their options before moving forward.
Loan document review
Determine whether your loan requires defeasance or yield maintenance. Identify any provisions that could affect when defeasance is permitted, what will be required to complete it, and how much it may cost.
Comprehensive quote
Provide a detailed breakdown of all costs, including the government securities portfolio at current market pricing, third-party fees such as servicer, accounting, and legal fees, and Paragon's consulting fee.
Timeline assessment
Determine whether your desired closing date can be achieved and what additional costs, if any, may apply when expedited processing is required.
Defeasance Execution
A defeasance is a highly coordinated transaction where multiple parties must complete their work in the proper order to keep the securities purchase and real estate closing on schedule. Paragon manages each step, working ahead of the servicer rather than reacting to requests as they arise.
Servicer notification
Provide a customized template for the notification of intent to defease, submit the notice to the servicer, and coordinate the required defeasance deposit.
Transaction kickoff
Organize the kickoff conference call with all parties and outline the timeline so everyone understands responsibilities and deadlines.
Securities structuring
Coordinate with securities dealers to structure a portfolio that matches the loan's payment schedule and, where loan documents permit, incorporate higher-yield agency securities that can reduce cost.
Documentation coordination
Anticipate the standard deliverables the servicer will require, such as title commitments, good standing certificates, resolutions, and W-9s, and guide preparation before they are requested.
Closing orchestration
Coordinate the two-day closing process alongside the property sale or refinance. On Day 1, securities are priced and reserved for purchase. On Day 2, funding occurs, securities are purchased, and the servicer authorizes release of the mortgage lien. Throughout the closing process, Paragon works with all parties to keep the securities purchase, funding, and real estate closing synchronized.
Legal Coordination
Defeasance requires specialized legal opinions and documentation that many real estate attorneys encounter only occasionally. Our relationship with counsel who have spent decades representing servicers gives borrowers access to attorneys who understand how servicers evaluate transactions, what approvals they require, and which issues can materially affect a closing.
Focused review
Working alongside borrower's counsel, these attorneys help focus attention on the items that matter, reducing unnecessary back-and-forth and helping avoid delays that can surface late in the process.
Specialized opinions
Provide the specialized legal opinions commonly required in defeasance transactions, including New York enforceability opinions.