Consumer Voice - - Bfsi / Reverse Mortgage Loans -

re­v­erse mort­gage loan. scheme. not come for­ward to lend un­der this scheme. This could be due to the long ges­ta­tion pe­riod for re­cov­ery and the loan re­cov­ery be­ing pri­mar­ily linked to the death of the ben­e­fi­ciary. house own­ers above the age of 60 years. If spouse is a co-ap­pli­cant, then he/she should be above 58 years. This re­stricts bank lend­ing. res­i­dence of the bor­rower. lu­cra­tive for the bor­rower. Also, the monthly pay­outs are fixed. There is no pro­vi­sion to in­crease this amount in case of an emer­gency or con­tin­gency. prop­erty. For a se­nior ci­ti­zen, this pro­ce­dure could be te­dious and dif­fi­cult to un­der­stand. the res­i­den­tial prop­erty, that could af­fect the se­cu­rity of the loan for the lender. Such changes could be rent­ing out part or en­tire house, ad­di­tion of a new owner to the house’s ti­tle, or cre­at­ing fur­ther en­cum­brance on the prop­erty. arises as the term gets over. So, if some­one lives the term, they run the risk of los­ing the house if they are not able to re­pay the loan. owned prop­erty as an im­por­tant fam­ily as­set to be in­her­ited by the next gen­er­a­tion. A re­v­erse mort­gage loan may run con­trary to this be­lief.

It is not nec­es­sary for the bor­rower of a re­v­erse mort­gage loan to con­tinue for the en­tire tenor of the loan. One can al­ways pre­pay the outstandin­g loan and get the doc­u­ments re­leased.

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