Mohan Dass 22 June 2019

reverse mortgage

I am a senior citizen, applied for reverse mortgage loan against my house property. As requested by me, the bank approved lumpsum loan of Rs.15 lacs. I need not pay the EMI. After the completion of 10years tenor period, I have to refund Rs.45lacs (principal+interest) to close the loan. At any time during the tenor period, I can foreclose the loan by paying the principal+accrued interest. For that purpose, I have to register a simple mortgage deed and deposit the property documents to bank. My clarification is whether I have to execute simple mortgage for Rs.15lacs or for Rs.45lacs. The bank officials also not clear. Kindly clear my doubts. Thanks.

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5 Replies

Shashi Dhara 22 June 2019

For fifteen lakhs with interest

Mohan Dass 22 June 2019

actually the bank will give Rs.15lac only as one time payment. I have to repay that amount+accrued interest as one time settlement anytime during the tenor period of 10years. After the completion 10years, the repaying amount workout to Rs.45lacs. For the registration of simple mortgage, the bank officials consider the loan as 45lacs. Somebody told, 15lacs only to be mentioned in the mortgage deed. Some others told 45lacs. which is legally correct. kindly clear my doubt.