Reverse mortgaging of house with a bank
Anil
(Querist) 16 May 2013
This query is : Resolved
Dear Sirs,
I shall immensely be grateful for your kind professional guidance by yr legal experts in respect of "Reverse Mortgaging " of house with a special focus on aspects to be taken care of before entering into the process.(Essentials one must take care of ) .for a self owned house.
Needful is gratefully acknowledged.
warm personal regards.
anil k upadhyaya (64 Yrs)
R.K Nanda
(Expert) 16 May 2013
state real facts.
Anil
(Querist) 16 May 2013
Thanks Sir for the kind reply. In fact for supporting an entrepreneurial need in family an amt of 15 lacs approx is being thought of. As understood ,thru reverse mortgage ,this amount can be obtained after bank's assessment of the property which is too high as of now in comparison to amount sought. Your kind expert guidance is reqd for guiding in respect of "MUST KNOW & SHOULD KNOW BEFORE ' to safeguard the interest of the seeker in respect of property itself. The amount will be paid back in 8/10 yrs and papers taken back .
Yr word of advice is gratefully acknowledged.Pl tell:
1. can we go for this ?
2. what care must be taken?
Personal regards.
anil k upadhyaya
R.K Nanda
(Expert) 16 May 2013
consult local lawyer.
ajay sethi
(Expert) 16 May 2013
find out the market value of property . approach public sector bank and find out how much they are offering you for reverse mortgage . you have to continue living in said property . if you do not stay in said property bank will foreclose the loan
in addition you need to have your flat insured pay property tax regularly and maintain your flat
please note that you cnanot give your property on rent till loan is fully paid
ajay sethi
(Expert) 16 May 2013
Lenders offer loans up to 40-90% of the market value of the property under this scheme. There is a cap of Rs 1 crore on the loan amount. At present, reverse mortgage loans are available at 10-13% rate of interest. you cna repay loan prematurely without any penalty
