A borrower obtains a mortgage modification in New York that increases the principal balance from $300,000 to $350,000. What is the mortgage recording tax obligation?
Correct Answer
B) Tax is due only if a new mortgage document is recorded
Mortgage recording tax in New York is triggered by the recording of mortgage documents. If the modification requires recording a new or amended mortgage document that increases the secured amount, tax would be due. If it's simply a loan modification agreement that doesn't require recording a mortgage document, no additional recording tax is typically due.
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Related Topics & Key Terms
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Related Concepts
Foreclosure is the legal process by which a lender takes possession of a property when a borrower fails to make mortgage payments. It allows the lender to sell the property to recover the outstanding debt.
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