When is a CEMA not an option?

Unfortunately, there are several types of transactions in which a CEMA is just not possible or practical. Specifically, it is not practical when the costs of the CEMA (legal, bank fees, etc) are more than the savings. My rule of thumb is that if you can save more than $300.00 and without costing any additional time, then go for it. When was the last time someone gave you $300.00 for nothing.

Its is not possible to do a CEMA in the following transactions: When the seller has no mortgage; when you are buying a coop; when you are buying a new construction condo (in most cases); and, when either of the two banks will not allow it.

Other than coops, it does not matter what type of property you are buying. Whether its a single family house, multi-family building, condo or townhouse, a CEMA can save you lots and lots of money.

On that note, on the one week anniversary of this blog (more or less), I hope that visitors to the site recognized that the CEMA is a great way to save a substantial amount of money on closing costs. Make sure to ask your lawyer or real estate broker or mortgage broker about it when making the offer to buy.

I think that I will give the CEMA posts a rest for a while and move on to other topics but I will revisit the issue at a later date as a reminder.