India, Aug. 23 -- In 2019, a retired couple in Pune used a reverse mortgage on their bungalow for extra income. After the husband died, the bank asked the children to repay the loan to keep the house. But the title still showed an uncle's name from years ago, and no legal papers existed for his share. Clearing this took almost two years in court. Meanwhile, interest kept adding up, and by the time the matter was resolved, the family had to sell the house for less than its market value.

Reverse mortgage refers to the conversion of equity in the property to a lump sum amount disbursed by a bank to the borrower. Whilst securing a reverse mortgage may not be an issue during the lifetime of the borrower, the lump sum amount along with accrued...