Can a bank auction property?

Banks keep coming up with property auctions to recover loan dues when borrowers default. Initially, banks send recovery notices. These properties are then put for auction under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act (Sarfaesi Act), 2002.

How do you buy an auction property from a bank?

Steps to Buy Property through Bank Auction

1. Step 1: Search for Bank Auction Property.
2. Step 2: Check Property Details.
3. Step 3: Physically Inspect the Property.
4. Step 4: Submit Tender Form.
5. Step 5: Bidding.
6. Step 6: Auction Date.
7. Step 7: Sale Certificate.
8. Step 8: Register Sale Certificate in Sub-Registrar office.

Are bank auction properties cheaper?

Properties repossessed by banks are routinely sold off through auctions at prices that are 20-30% lower than the prevailing market rate. A bank auction can be an offbeat, albeit somewhat tedious way to steal a deal.

How does bank auction property work?

As a standard practice, banks make bidders submit 10-15 per cent of the reserve price of the property as an earnest deposit. In case you win the bid, you will have to deposit with the bank another 15 per cent of the reserve price of the property with the bank within two days.

Can you view an auction property?

Properties are typically marketed online for up to 30 days, long enough to give you the opportunity to study the sales details, auction requirements and download any relevant legal packs. You may also be able to view properties in person if you speak to the auctioneer.

Do you need pre approval for an auction?

Making a bid at auction without the certainty of loan finance is a very high risk strategy. It makes more sense to secure loan pre-approval as this will give you confidence as a bidder and set an all important limit on your bidding.