Reverse Mortgage-does it help the senior citizens to live with dignity or burden the inheritors?
The concept of reverse mortgage is popular in Mumbai and seniors do not have to ask their grown up independent children for pocket money every month,sell their homes and relocate to periphery of city in a smaller unit or lose the title of their home.The banks give a lump some amount for emergencies and some amount of money every month.The title is retained but papers are with the bank.After death the inheritors can pay to bank money used by their seniors during their lifetime along with interest and take back property papers. As property prices always go up,nobody is a loser.Right or Wrong? more
Neelam Nath madam, its good option
Neelam nath madam,its good option. But be careful with docs. Read carefully that what clauses bank is incorporating in reverse mortgage deed n other docs. Consult local advocate with all the docs. more
Thanks Chandhar Sir,hope many like me will find it useful. more
Don't get panicked. If you avail RML there is no fear for your daughter to get back the original title deeds of your mortgaged property and the bank MUST handover the titles to the legal heirs of you provided she must pay the entire dues and you can till your death stay in your own house without any fear from bank and if your daughter (suppose) fails to close the RML, the bank is at liberty to sell the property and the surplus money after sales will be paid to your daughter without any hitch, because generally the land cost and the building will get appreciated to many fold. This is what I experienced with SBI Palani TN branch. But int. rate is 13.25% and you will get 1/3 of the engineer's valuation. more
Mr. Chandhar Sir, please tell us of there is any wrong effects? I am thinking of doing so but my daughters are against it,why?Will she have difficulty to procure documents back from bank after me,after she pays for the amount I have used with interest? more
Yes you are correct. I am one such example for this RML with SBI, Palani TN branch and I also closed the same within 4 years more