"I have a borrower who is trying to save money on a refinance in Manhattan, any ideas?"
"Sure," I said, "use a CEMA."
CEMA is shorthand for Consolidation, Extension and Modification Agreement. It helps to save mortgage tax because the original mortgage being paid-off is assigned to the new lender instead of being satisfied. The mortgage tax is paid only on the amount of the loan being given by the new lender. The two mortgages are "consolidated" into one by the CEMA.
The New York Times has an interesting article on the money saving aspects of a CEMA transaction. Read it here.
For your next title order or
if you have questions about what you see here, contact
Stephen M. Flatow, Esq.
Stephen's Title Agency, LLC
165 Passaic Avenue, Suite 101
Fairfield, NJ 07004
Tel 973-227-4724 - Fax 973-556-1628
E-mail Stephenstitle AT comcast.net - www.stephenstitle.com