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    REVERSE MORTGAGES

    Banks and housing finance companies are reading themselves to bring out their reverse mortgage products. We all know that reverse mortgage will enable senior citizens to mortgage their property with a bank / finance company and receive monthly payments. At the end of the term or the death of the person opting for the reverse mortgage the bank / finance company is free to sell the property to realise the amount due to them. B ut since the concept is new to India, a number of issues will need to be clarified so that senior citizens are able to take a call. We explain how to scheme will work and the grey areas-perticularly taxation that will need to be sorted out.

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    that reverse mortgage will enable senior citizens to mortgage their property with a bank / finance company and receive monthly payments. At the end of the term or the death of the person opting for the reverse mortgage the bank / finance company is free to sell the property to realise the amount due to them. B ut since the concept is new to India, a number of issues will need to be clarified so that senior citizens are able to take a call. We explain how to scheme will work and the grey areas-perticularly taxation that will need to be sorted out.

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    e end of the term or the death of the person opting for the reverse mortgage the bank / finance company is free to sell the property to realise the amount due to them. B ut since the concept is new to India, a number of issues will need to be clarified so that senior citizens are able to take a call. We explain how to scheme will work and the grey areas-perticularly taxation that will need to be sorted out.

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    ise the amount due to them. B ut since the concept is new to India, a number of issues will need to be clarified so that senior citizens are able to take a call. We explain how to scheme will work and the grey areas-perticularly taxation that will need to be sorted out.

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    ble to take a call. We explain how to scheme will work and the grey areas-perticularly taxation that will need to be sorted out.

    FIRST THINGS FIRST

    The first step, quite obviously is to knock on the doors of a bank or housing finance company and express willings to pledge one’s home for the reverse mortgage scheme. The HFC will access the value of the house by independent valuation. Then the HFC will arive at the loan amount depending upon the age of the person opting for the reverse mortgage and prevailing intrest rate. However the loan amount will be on the basis of current value of the property and not an possible future appreciation. Currently, as per industry estimates the loan-to-va

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