Finance
In New York, a 'co-op underlying mortgage' is:
AThe individual share loan obtained by a co-op purchaser
BThe blanket mortgage on the cooperative corporation's entire building and land, which affects all shareholders' maintenance costs✓ Correct
CA second mortgage taken by the co-op board
DA mortgage that requires board approval to refinance
Explanation
The underlying (or blanket) mortgage on a NYC co-op is the mortgage the cooperative corporation has on the entire building and land. Each shareholder's monthly maintenance charge includes a share of the debt service on this underlying mortgage. A large underlying mortgage increases carrying costs and affects the effective purchase price for shareholders.
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