Bank auction of proprty

Pointwise comliance is as under:

1)It is not advisable for a layman to buy the reffered property through bank Auction , Property dealers with experience in property litigation may purchase .

2)There shall be no  problem in passing of title ,the property purchase should be avoided keeping in mind the litigation present and future.

3) Normally the bank may avoid giving home loan on such properties.

4) The bank may avoid giving housing for this property,however there is no restriction on Bank.

One more point to add on Hon. Cheema sirs advice it useal practice of bank officers not to cooperate with the purchaser once the amount is paid to bank,secondly if the guarantor saler objects the price of the mortgaged property,he may continue the litigation.

If the house property is mortgaged to the bank by its owner as security to a laon and if such loan is defaulted and classified as NPA and later if the bank put the said property for auction under SARFAESI Act, then the purchaser gets the valid title and possession, subject to any litigation pending challenging such sales.

It is unsafe to buy this particular property as it is totally tenant occupied . Bank will find it difficult to evict the bonofide tenants. If the owner of the property is residing there the secured creditor will not have any problem in evicting him.  As  far as the transfer of title is concerned I dont think this particular gurantor (owner) will allow you to have a smooth sailing . Just because the stay is lifted and the bank is pursuing with auction it does not mean that his legal remedies are exhausted. He may file different petitions  in various courts and thwart banks attempt in transfering the property in ur favour.