We recommend allowing at least 30 days to complete the defeasance process. If Rating Agency review is required, our recommendation is to allow 45 days to complete the process.
Once the defeasance process has started, the closing date is flexible and can be changed without penalty until the defeasance bonds are purchased.
In most cases, the Loan Servicer will waive any notice period and will also waive any requirement that the defeasance close on a loan payment date.
More information on the defeasance timeline is available within Chatham’s Defeasance Best Practices.