How Do New York CEMA Transactions Work?

If you have head the term “CEMA” or “CEMA” transactions before, it is possible that you might currently be interested in getting a mortgage loan. New York CEMA transactions basically refer to a law that says that the borrower of a mortgage loan secured by real estate may be exempt from recording tax by using taxes previously paid against the property. New York CEMA transactions are put in place in order to promote savings on taxes but they do have a downside, which is the cost and the length of the process associated with these transactions.

Let’s clear the air first, CEMA stands for Consolidation Extension and Modification Agreement and basically what it is, it is a document that enables consumers to use Section 255 of the New York State Law in order to reduce their mortgage tax in purchasing or refinancing transactions. Generally speaking a CEMA transaction will be used to decrease the cost of the total tax paid on a mortgage for both the borrower and the lender, thus reducing the total amount paid on the mortgage over time. A CEMA transaction can –and will reduce the total amount both parties have to pay on these specific mortgage transactions by combining old and new liens.

If you are currently considering using this document to reduce the total tax paid on your mortgage transaction then the assistance of an experienced and educated attorney can be of extreme value when it comes to securing your CEMA. Guidance along the way and knowledge of the regulations and laws regarding CEMA are a common necessity in these real estate transactions. Remember that a CEMA transaction must be used only in the correct situations and in certain counties, so the valuable advice of an experience firm can help make the difference.