Our Defeasance Services

Waterstone works for you and is committed to making the complicated defeasance process as uncomplicated as possible.

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Who is Involved?

GENERATE COST ESTIMATES

Waterstone provides complimentary cost estimates and updates throughout your closing process.

STRUCTURE SECURITIES PORTFOLIO

Your loan documents will govern the type of securities that can be purchased; typically US Treasuries and Agency securities. Our securities professionals work with major broker dealers to structure an optimized portfolio.

COORDINATE THIRD PARTY VENDORS

Waterstone acts as the project manager coordinating with various parties such as the servicer, servicer’s counsel, verification accountant, securities dealer, securities custodian, rating agencies, title company, and successor borrower to ensure the defeasance is completed within your closing schedule.

CREATE SUCCESSOR BORROWER

Waterstone will create and maintain the special purpose, bankruptcy entity to assume the loan from the original borrower.

RESIDUAL VALUE SHARING

As experienced defeasance professionals we understand the pitfalls as well as the windfalls. Our transparent approach discloses potential residual dollars generated from the Successor Borrower account.

THE WATERSTONE EXPERIENCE

Our goal is to give you confidence in our abilities as your defeasance consultant. You will receive our full attention. If you have a question – we will be there to help you. The defeasance process can be complicated, we know that, so we make sure you stay informed along the way so you can sleep at night.

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The Waterstone Process

Defeasing a loan takes a coordinated effort across several different players. You will be carefully guided through our time-tested process to assure your transaction is being handled by experienced professionals.

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WHAT ARE THE NEXT STEPS?

Your next step is to give notice of your intent to defease the loan to the Servicer, as required in your loan documents. Loan documents typically require the borrower to give notice within 60 to 90 days of your projected closing date. The Servicer will then require various up-front deposits be paid. Once these have occurred, the Servicer will engage its outside counsel to commence the defeasance process with the various parties.

Waterstone Defeasance will coordinate this initial communication on your behalf, ensuring the process gets out of the gates smoothly. Contact us today to discuss your Next Steps in more detail.

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