There are several different parties that may be involved in your New York CEMA transaction. This type of transaction involves the assignment of a seller’s mortgage to a purchaser through the sale transaction. When the existing mortgage is assigned to the new borrower during the closing, it will be amended to reflect the terms of the new mortgage.
There are many different situations where a CEMA can be utilized. It can be used in any purchase sale transaction outside of co-ops. The transaction must include an outstanding mortgage and a situation where the purchaser is borrowing money to finance the purchase. The seller’s lender has to be willing to assign the current mortgage and the purchaser’s lender also has to be willing to take the mortgage in assignment.
The critical parties involved in a CEMA transaction include the new lender, the current lender, and the attorneys for both the purchaser and the seller. It is important that both the seller and the purchaser involved in the transaction have legal representation present in order to ensure that everyone is clear on their responsibilities and rights. Coordinating the assignment regarding the existing mortgage with amendments reflect the terms of the new buyers commitment requires an experienced attorney. The lawyers present for both the seller and the purchaser are critical for coordinating the assignment.