Expertise in Defeasance and Prepayment Defeasance and Yield Maintenance are two alternatives that real estate borrowers may consider for paying off existing debt. Yield Maintenance is an actual prepayment of a loan. It is most common in agency loans and those originated by balance sheet lenders. Defeasance is the substitution of collateral and assignment of debt and is mostly seen in securitized, CMBS debt. As a real estate investor considering prepayment terms or defeasance – whether it’s to restructure a loan and exit from current debt – questions of cost versus flexibility and overall benefits versus penalty are common. The Defeasance Team at Chatham Financial has paved the way for transparent defeasance services since 2000. With more than 1,000 defeasances totaling more than $28 billion on behalf of clients, Chatham has navigated a wide range of defeasances, from $2 million…

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Oscar Wilde would have loved the Twitter genre; he was a veritable epigram machine. Even though everything he wrote is now at least a century old, it hasn’t lost relevance or zing. Think of how pertinent Wilde’s statements still are on topics as diverse as Narcissism: “To love oneself is the beginning of a lifelong romance.” Celebrity: “There is only one thing in the world worse than being talked about, and that is not   being talked about.” Identity: “Be yourself; everyone else is already taken.” Transcendence: “We are all in the gutter, but some of us are looking at the stars.” Modern conveniences: “We live in an age when unnecessary things are our only necessities.” For us, though, the best Oscar Wilde quote is from The Picture of Dorian Gray: “Nowadays people know the price of everything and the…

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