DEFEASANCE
Uncommon Approach
By substituting collateral for a loan, mortgaged property can be replaced with government securities to avoid yield maintenance and prepayment penalties. For these reasons, defeasance has become a popular option in the growing CMBS market. Wachovia's integrated approach, complemented by our full-service platform, allows us to provide the most cost-effective, efficient, and expeditious defeasance services in the marketplace.
Uncommon Partnership
Ranked first in Master Servicing by the Mortgage Bankers Association, Wachovia is a leader in the defeasance market and a trusted partner that provides you with the benefits of our:
Strong positioning for low-cost third-party charges
Staff expertise—knowledgeable about all CMBS industry requirements
Relationships with outside vendors—including legal and extensive industry contacts
In-house derivatives desk—experienced in structuring optimal portfolios of government securities
Competitive securities pricing with no hidden charges
Advance notice of intent to defease is usually required and the typical defeasance takes three weeks to close. To get started, you need to send us a good-faith deposit. Click on the “Defeasance FAQs” link on the right side of this page for more detailed information about the defeasance process.
If you're interested in using the cash flow from the purchase of government securities to cover the debt service requirements for the remaining term of your loan, call us at:
Defeasance Services
(866) 734-5757
8:30am - 5:30pm ET
Monday - Friday
wachovia.defeasance@wachovia.com
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