Maria discovers that the mortgage recording tax was not paid when her mortgage was recorded six months ago in Onondaga County. What is the consequence of this oversight?
Correct Answer
A) The mortgage remains valid but the borrower owes the tax plus interest and penalties
Under New York law, failure to pay mortgage recording tax does not void the mortgage itself, but the borrower remains liable for the unpaid tax plus applicable interest and penalties. The mortgage recording remains effective, but the tax obligation persists with additional costs.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A trustee sale is a type of foreclosure where a trustee, appointed under a deed of trust, sells the property at auction to satisfy the debt.
Usury is the practice of charging an interest rate that exceeds the maximum rate permitted by state law. Usury laws protect borrowers from excessive interest charges on loans.
A VA loan is a mortgage guaranteed by the Department of Veterans Affairs available to eligible veterans, active-duty service members, and surviving spouses. It offers no down payment and no private mortgage insurance requirements.
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