CMBS Specially Serviced Premium Calculator

Transfer to special servicing triggers substantial additional fees and premiums.

Loan balance

Special servicing fee %

Workout fee %

Default interest (bps)

Months in special servicing

Total premium

$1,046,875

Special servicing fees

$46,875

Default interest

$750,000

How the math works

SS fee = balance × SS% × (months/12). Workout one-time. Default = balance × bps × (months/12).

$25M × 0.25% × 0.75 = $47k SS + $250k workout + $25M × 4% × 0.75 = $750k default = $1.05M premium.

How to Use

Enter loan balance.
Enter special servicing fee %.
Enter workout fee %.
Enter default interest bps.
Enter months in special servicing.
Read total premium.

Frequently Asked Questions

What is CMBS special servicing?

CMBS loans start with 'master servicer' handling routine collections. On default or material event, loan transfers to 'special servicer' for workout, foreclosure, or sale. Special servicers (Midland, KeyBank, LNR) charge fees for handling. Transfer triggers: 60+ days delinquent, bankruptcy, material lease/tenant issue, major maintenance default. Once in special servicing, borrower loses most negotiation leverage.

What are the fees?

Special servicing fee: 25 bps of loan balance/year or $10-25k/year minimum. Workout fee: 0.75-1.5% of loan balance (one-time) if workout agreement signed. Liquidation fee: 1-2% of loan balance if sold/foreclosed. Late fees: 5-10% of late payment. Default interest: base rate + 4-5%. Legal fee reimbursement: all. In total, special servicing can add 3-7% of loan balance to total cost of resolution.

How to avoid?

Cure pre-delinquency (15-day window typical). Proactive communication with master servicer — request modification before triggering special servicing. Bring cash infusion + covenant plan. Most master servicers can grant 30-60 day forbearance without triggering transfer. Once transferred, process becomes bureaucratic and expensive. Pre-transfer is the negotiation window.

Negotiating once in special servicing?

Bring credible sources of capital + executable plan. Offer cash infusion, personal guarantee, extended recourse — whatever's needed. Special servicers have fiduciary duty to CMBS bondholders — they must document recovery is maximized. Discount-to-par payoff is negotiable if can demonstrate foreclosure recovery is lower. Legal counsel specialized in CMBS workouts essential — this is not standard real estate law.