Hi Members,
I have read Manish’s blog on Reverse mortgage and also read the NHB guidelines on the same – http://www.nhb.org.in/RML/guidelines.php
I have some queries on this topic and would like to learn from the members’ experiences/suggestions.
My parents enquired about Reverse Mortgage loan from Oriental bank. The manager explained some rules but also admitted
that not many people in India have taken loan for this and he is also not very sure of all points.
My mom is 56 years old and my Dad is 62 years old. They have an apartment (more than 15 years old) in Siliguri and we stay in Bangalore.
The apartment is in my Mom’s name.
1> The Bank manager informed that, for them to get this mortgage loan, my mom should also be above 60 years. However, reading the rules
as in the link above, it states that since this is like a joint loan, even if one spouse is above 60, they are eligible for the loan.
Is my understanding correct?
2> My parents keep visiting us in Bangalore and sometimes stay for like an year. In the guidelines, its mentioned that the borrowers should not vacate their house for
more than a year.
However, say a situation arises that this my parents take this loan. After 5 years, they feel they want to move permanently with us.
In this case, do my parents have to sell the apartment, and settle the dues with the bank? Or will the bank sell the home, take their dues and give the rest of money to my parents.
If my parents have to sell the same, then they are not too keen to go for this loan. Reasons can be ill-health during that period, too many complications in finding buyer, selling home,
settling loan etc etc…
I know renting now and selling later is also an option. But my parents want to keep the flexibility of staying in their apartment whenever they want , as of now.
Any advise, suggestions and thought are welcome. Is our thought process ok?
Rgds,
Jassi