What is Bank Auction property?

Please read the following details about the bank Auction property

•   We are glad to introduce ourselves as chennaibankauction.com dealing with Bank Foreclosure Property since 2010. We provide our clients with unparalleled value, offering properties at discounts ranging from 20% to 60% below market rate.

•  The Bank / DRT (Debts Recovery Tribunal) and NCLT (National Company Law Tribunal), ARC (Asset Reconstruction Company),NBFC ,COURT will commit for sale of the property of the Default Borrowers as per provision of SARFAESI ACT 2002 (Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002).
• The Bank will set a base price or reserve price for a particular property based on the valuation report.
• The bank will fix a day for auction and 10% of the EMD amount(earnest money deposit)has to be paid as Demand Draft or RTGS prior to the day of the auction in order to participate in the auction.
• If you win the auction by bidding the highest price then you have to pay 15 percent of the sale amount which should be paid within 24 hours as a Demand draft or RTGS to confirm your sale order. The balance amount should be paid within 15 days to 3 month.
• Simply pay 25 % of the property value on the day of auction. The remaining 75% amount should be paid within 15 days to 3 month.
• Further the Bank will give you all the documents such as Sales Certificate, Original Sale Deed and the Parent document of the property after you pay the remaining 75% of the payment.
• We can arrange 90% loan for properties less than 30 lakhs. For properties above 30 lakhs, 75% of the loan amount can be arranged.
• Some properties are occupied by the Borrower or Tenant/Lease party. In such cases, Bank gets a court order to evict the party. It usually takes 1 to 6 months for this entire process of eviction.

Advantages:

1. PRICE ADVANTAGE: Approximately 20 – 60% cheaper than the market price.
2. LEGALLY SAFE: Since Banks / Financial Institutions have given loans after verification of all the legal aspects only,these are 100% legally safe.
3. CREDIBILITY OF SELLER: You are buying from a Bank / ARC / DRT/ COURT / NCLT / Financial institution which is authorized by Govt of India to sell such properties.
4. BROKERAGE FREE: You can download the Auction sale notice, contact the bank and purchase the property directly without any brokerage.
5. TIME FRAME: Entire transaction will be over in less than one month period.
6. TRANSPARENCY: 100% transparent transaction.
7. PROBABILITY: 90% chance of winning the Auction.

Note:

1. Bank properties are 20-60% less than the market price. The price mentioned is not the final price. It can be increased during the auction.

2. The payment is fully white and accountable. There is no black money transfer in bank auction properties.

3. The bank is the only owner of the properties that have come to auction. All signatures in the sale certificate when you buy the property will be signed by the bank Authorities and not the borrower. The Borrower is no more the owner once the property is mortgaged. As per SARFAESI ACT 2002, the borrower’s sign in the sale certificate even as a witness is invalid.

Download SARFAESI ACT 2002 in PDF(Securitisation And Reconstruction Of Financial Assets And Enforcement Of Security Interest Act, 2002)

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