A process wherein a real estate is released from collateral by substituting it with a portfolio of U.S securities. Usually, a borrower purchases a portfolio of securities using the proceeds from the sale of real estate that once secured the loan. The yield from securities bought should cover the remaining payments of the original loan as defeasance does not extinguish the original obligation.
Related information about defeasance process:
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A process to substitute collateral when looking to sell or refinance an existing property which was acquired through a real-estate loan. Plainly speaking, the ...
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Defeasance process” is a process to substitute collateral when looking to sell or refinance an existing property which was acquired through a real-estate loan.
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Our professionals guide borrowers through the defeasance process by actively managing it from start to finish, which allows borrowers, and their attorneys and ...
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Definition of defeasance process: A process wherein a real estate is released from collateral by substituting it with a portfolio of U.S securities. Usually ...
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Oct 24, 2012 ... Chatham Financial has vast experience with assisting borrowers through both Yield Maintenance calculations and the Defeasance Process.