Can authorized heirs have declare within the reverse mortgaged property?

One of my kinfolk has reverse mortgaged his home, he died just lately. It is known that there’s a particular will insisted by the banker and acquired executed on the time of reverse mortgage, whereby it says, “the property will devolve on my wife with absolute rights” and so forth. Are the authorized heirs eligible to say for the rights of the mentioned property?

– Arun

It is advisable to confirm the phrases and circumstances of the reverse mortgage. Typically, in a reverse mortgage, the place a property has been mortgaged, the financial institution or monetary establishment has the suitable to promote the property after the loss of life of a person and the surplus quantity is remitted again to the authorized heirs. However, because the property has been bequeathed underneath a will, the legatee(s) talked about therein could be liable to the surplus monies, if any, after the sale of such property. In this situation, the authorized heirs could think about buying the property from the financial institution.

The question was answered by Rishabh Shroff. He is a associate at Cyril Amarchand Mangaldas. Queries and views at mintmoney@livemint.com

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