The trend of obtaining properties through bank auction is not new. However it is attractive and most of the times you can tap the deal at a reasonable amount. We live in a time where buying a property is one of the costliest things to do in our lives. In such pressure we always look for alternatives. One such alter is the properties auctioned by the banks, usually at 15-20% lower than the actual value. Though the practice is not prominent in our country but still it happens and it’s really worth giving a shot in a move to get a house at a price lesser than usually quoted by the developers.Why a bank auction properties?When a borrower defaults in repaying the loan for longer duration than mentioned in the rule book then according to the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI Act), banks can consider the property as a non-performing asset and auction it for the recovery of the debt that has been accumulated over the bank as a burden.As the bank doesn’t care about profit, but only in outstanding principal and the interest, the amount is lesser than in the market.What to Check while Buying Home in an Auction?The price of these properties might be lower than you get in the market but you have to check if you are looking at the whole picture or not. Sometimes the amount quoted by the bank is not gross and various additional costs are hanging behind the curtains.The duesWhen the owner of a property who defaults in payment receives its first notice, a time period of six months is availed. So if the owner is unable to clear out the pending amounts, the property is seized. Or if the owner knows from before that he/she couldn’t pay the loan then they would also escape from paying property tax, maintenance fees and utility bills. So here you see: over the property price, straight six month outstanding dues plus the extra cost mentioned including the taxes. So clear the hazy picture first and then look forward.Check the condition of propertyBanks care none for the property and that is why you must visit and check if the condition of the property is healthy or not. If it needs repair work then calculate how much it will take because it’s you who have to bear the expenses. If the expenses are going too high then there is no advantage of buying an auctioned property. If the quality is good then you can always go for it.What if the previous owner had left something in the house?It is totally possible that the previous owner had left items like furniture, home appliances and furnishes. OR there might be items that are totally useless. So the question that arises here is that who will take the responsibility of those items: the bank or the buyer. What if the items are sold and then who will be the bearer of the amount obtained through selling? All these documents are clearly mentioned in the bid document, so don’t miss reading the papers, there might be a bug.What happens after the bid?It’s simple, after the bid you have to pay the down payment. But here’s the tough part: mostly the bank asks around 20-25% of the overall amount (selling price). So if you cannot afford to pay that much then the bid is obviously not successful. However the bank might help you in obtaining loans if you need. If you are lucky then a lower interest rate home loan will choose you.Apart from checking all these, auctioned properties always bring benefit to a buyer as the bank would obviously have gone through all the documents and hence the paper work must be up to date. Also there will be no legal issues. There might also be a possibility that the property is in a recognized location. So keep your eyes open and go for it.займ на карту без отказов круглосуточновзять кредит онлайн