Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

How soon after loan origination can I defease my loan?

April 26, 2017defease loan Origination Soon

0

Posted

How soon after loan origination can I defease my loan?

1 Answer

0

Posted

Your loan documents will normally contain restrictions on when you are able to defease your loan. These may, for example, specify that you can defease no earlier than 2 years after the securitization of the loan or 3 years after the origination date of the loan. While the second figure is somewhat arbitrary (we also regularly see 4 years), the 2 year restriction following securitization is a legal requirement for REMIC Trusts.