1 BHK Bank auction flats in Malad, Properties, Apartments Price 2022

Every buyer has a fantasy to acquire a perfect home that will become their future address, hence for the benefits of your family, we are putting some of the advantages

of securing 1 BHK Bank auction flats in Malad. Many time reading or noting can help us to make a better decision. If you are rallying ideas before you take the plunge, then here are some reasons why obtaining a 1 BHK bank auction apartment in Malad can be a wiser move.

1 BHK Bank auction flats in Malad for sale Process – A Complete Guide

Seizing a property takes place by the lender in the scenario when the borrower defaults on the payments. Such seized properties are auctioned below the market price. Generally it is a rare case where the borrowers fail the payments and the ratio is 1 out of 20, where the borrower gets an auction warrant.

Getting such properties at throwaway prices has lesser possibilities though. The base auction price is determined on the basis of the outstanding loan amount. The lesser the owner’s loan term is pending, the lower the base auction price becomes.

Such auction properties are been advertised in all the major leading newspapers. Bad debts provision is always mentioned in Bank’s annual report, and if any auction properties are coming up for auction, the same is mentioned in the bank’s schedules / annexures. Any buyer who is Interested in bank sealed flats in Malad can also reach to an expert property consultant who specifically deals into auction assets.

The property consultants can also represent themselves on behalf of the investors with the owner of the property, or with the auctioning bank. It is highly important to read the bid documents to understand the outstanding dues status, when you are looking forward to buy bank sealed flats in Malad. Usually such auction properties are sold on “As is where is basis”. There are two options to buy such bank sealed flats in Malad – either you buy if from the seller directly or via the auctioning Bank.

The 1 BHK Bank auction flats in Malad for sale route is lengthy process, first of all the bank will invite the bids, collate all the offers and then finally decide whom to sell the auctioned property. It can be more complicated when the buyer himself looks for loan to buy such auction property either from some other bank of at the same bank. The bank assess the incoming buyer and prepares the contract accordingly for transferring the property with the owner’s consent and an NOC from the society.

The Societies and their residing members have first right to refuse to give an NOC. The members of the society can match the highest bid to purchase the property. Before releasing the NOC, the society will list down if any liabilities the new owner is entitled to bear, or if any member is been impacted. The bank authorities mentions such aspects in the bidding document, and the same can be assessed by the bidder to get an idea of the liability.

Buying such 1 BHK Bank auction flats in Malad for sale becomes easier when you buy it from the owner itself. Both the buyer and the owner can mutually agree on the commercial terms, exchange a token amount and then proceed with the bank process, so as to go ahead with the signing of the agreement and handing over the possession. But generally the price goes higher in direct deals, as compared to the 1 BHK Bank auction flats in Malad for sale, as the first owner would try to recover maximum of the initial investments made.

1 BHK Bank auction flats in Malad for sale is lengthy process. Now a days such 1 BHK Bank auction flats in Malad for sale are taken away by some of the agents. These Real estate agents charge a heavy commission in this entire process. Hence it is recommended to go through genuine agents only so as to avoid ending up paying high amounts of commission or to get forged by an agent.

What are the major factors for bank property Auctions?

Although many of you must be aware about the reasons due to which the property is auctioned, which is default in payments to the bank by the borrower. Normally the process of Bank’s auction process is initiated after the borrower has consecutively defaulted 3 instalments of the home loan. Post that, the bank sends a notice to the borrower, and expects a response from the borrower within 60 days, where the borrower may respond to the bank requesting them to not to initiate the auction process for the property. The borrower can pay off the arrear instalments and the notice withdraws. Or else the borrower can mention to the bank a justified reason within those 60 days to request them to hold the process. In cases where the borrower does not respond to the bank, then the bank has authority to auction the property after 30 days.

The real estate sector is now continuously fluctuating and down. Still the property prices are kept high by the developers. Instead they are offering various offers to lure the client, such as discounts and freebies. But the prices remain same.

A buyer can still get a property at a discount of 25 to 30 percent as compared to the market price, by doing some deep research and efforts. Such properties that are seized by the lenders under the SARFAESI (Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest) Act, 2002 are auctioned on regular basis. Such re-possessed or auction properties are been sold at 20 to 30 % lower rates than the current market rates.

Properties are seized by the bank only once they are convinced that the borrower is not unable to re pay the loan. After the borrower defaults minimum 3 EMI’s the lender Bank auctions that property for recovering the outstanding amount which consists of the principal and the interest amount. As per the track of previous few years, it is understood that such properties are usually sold at a discounted price then the market price.

Buying 1 BHK Bank auction flats in Malad for sale is a tedious process, it can become more difficult if you are not fully aware about the processes involved and the rules. There are such brokers and investors in the market who keep waiting for such auctions and try to grab the property deal at the best possible lowest price.

Sharing some tips that will be helpful in the Bidding and buying of an bank auctioned property in Malad.

Banks circulates the details of such auction properties they would auction in leading newspapers. Also there is a dedicated portal launched by the Indian Banks Association (IBA) that posts such properties auctions schedule, as going to individual banks websites was a tedious job. The Indian Banks Association portal provides information about residential, commercial, industrial and agricultural auction properties, which can be seen by anyone throughout the globe. The prospect buyers can register themselves on www.ibapi.com and login to view details of the uploaded auction properties and can participate in the auction process.

Calculation of the actual costs of 1 BHK Bank auction flats in Malad:

Such auctioned properties are always a part of legal disputes. There may be ongoing disputes of ownership, possession disputes, overdue bills, and may be in damaged conditions which needs repairs. You may realise that the final bid price was lesser than the actual price that has to be paid. Once the buyer buys such auctioned property then he is liable to settle the outstanding dues. Hence it is advices to first understand and calculate such additional costs and then submit your bid.

Hire a professional for assessment of the actual value of 1 BHK Bank auction flats in Malad:

It is very important while buying a auction property to conduct a thorough due diligence. Before the auction, get expert advice from a professional property evaluator to get the property appraisals to know the market value of the property. As per provided by the government regulations the auctioning bank sets the base value of the property considering the factors such as guidance value, deemed market value of the property, existing liabilities of the property. Set a margin of 10 Percent over the calculated value by the appraiser as a suggestive bid price to be on a safer side.

Getting the funds in place:

The bidders have to make a deposit of 10 percent of the reserve price as the earnest money, prior to begin of auction process in an Auction. This is a refundable deposit which is paid back to the depositor if he loses the bid. But if the bidder wins the bid then he has to pay 25 percent of the bid amount on the day of the auction itself. Balance payment has to be made in a limited given time (usually within 15 days from the day of auction). Hence the bidder must be ready with the funds that he has to pay for purchasing the auctioned property by liquidating the savings or taking a home loan. If you fail to make the payment within the deadline, then the entire 25 percent of deposit will be forfeited by the Bank.

The buyer should get an in principle home loan to be approved from the lender, if you are planning to buy the property by loan. Such loans are given by the bank only on the basis of the repayment capacity of the bidder and his credit history. The bank sanctions the loan on the conditions that the buyer will pay all the applicable charges such as registration charges, stamp duty and other legal and documentation costs and submits the registration documents of the property to the Bank, before the loan amount disbursal. So the buyer should be ready with the required funds as these charges are substantial.

Check points before bid submission of 1 BHK Bank auction flats in Malad:

Checking the registration details of the property: Check the property documents, original sale deed and non – encumbrance certificate under CERSAI (Central Registry of Securitisation Asset Reconstruction and Security Interest) properly. Those properties which are not registered does not have complete and proper documentation, this may lead to disputes later with the claimant.

Bid document and title deed: To understand the liabilities after the purchase you should take the help of a property lawyer. Your lawyer will check the title ownership and validate it legally, because while the auction of a repossessed property is done by a bank, it is not the owner of the property.

Recovery certificate from debt tribunal and indemnity certificate: The owner must get a recovery certificate from DRT (Debt Recovery Tribunal) before submitting your bid. An indemnity certificate must also be given by the bank to protect you from future claims from the owner or his/her legal heirs. The owner should be the confirming party ideally, who confirms the party to the property transaction.

NOC from housing society: The buyer should procure an NOC (No objection certificate) from the housing society and keep the record of any unpaid utility bills, statutory dues or litigations pending.

Deduct TDS: At the end remember for deducting the TDS equal to 1 percent of the value of the property, if amount is exceeding 50 Lakh. The TDS has to be credited to the PAN of the owner of the property.

Step by step Guide to buy property through 1 BHK Bank auction flats in Malad for sale.

Step 1: Search for 1 BHK Bank auction flats in Malad for sale Property.

This is one tedious step, as these is the data is unorganized in our country. There are some sites that provide information on 1 BHK Bank auction flats in Malad for sale, but this information is generally not available for free, there are certain charges applicable to access such information. Moreover, the sites are not updated on regular basis. Other sources of such information are leading Newspapers, Notices posted in the Banks branch, or Notice posted in the society. Also there is a website of Asset Reconstruction Company like ARCIL where you can find such notices. To make this process easy we advise you to search “1 BHK Bank auction flats in Malad for sale” on these online sites, note down maximum available details inducing the name of the auctioning Bank and then visit to that that Banks website or visit the bank branch or search notices for auction of property in newspapers.

Step 2: Check complete details of the property.

Once you have listed the auctioning properties, carry out initial search by yourself such as check the market price of the property. Though we already know the obvious reason for 1 BHK Bank auction flats in Malad for sale is default in payments by the owner but it is also advised to check if there are any legal disputes but check out any legal dispute, and check the options to participate in the Bank auction. The major issue with the 1 BHK Bank auction flats in Malad for sale is to get access to the documents of the property for title search, before purchase. Banks do not share much information. Bank wants to dispose of the property for recovery, this is their main objective. It is advisable to hire a property lawyer if you are really keen to buy the auction property.

Another important step is to check the defaulter’s outstanding balance. In a lot of cases it is observed that as compared to the reserve price, the outstanding balance is much higher. One should check the whether the property is auctioned at a lower amount then the actual outstanding amount and in such case how will the bank recover the balance outstanding amount. In any scenario, the defaulter is liable to pay the entire outstanding amount, but it is better to get a clarification on the same. If in case the outstanding amount is higher than the final bid amount, then the bank is liable to pay the balance amount to the defaulter.

Step 3: Physical Inspection of the property:

The buyer should physically inspect the property. In the auction notice Banks mention the inspection date and time now a days. The buyer can visit the property on the designated time for the property inspection. The E-auction notice has the concerned officer’s details mentioned, so you can contact him to get all the details. If a bank organizes physical inspection of the property, then it means that the bank has physical possession of the property. It is advised to buy banks physically possessed property.

The winner of the 1 BHK Bank auction flats in Malad for sale has to struggle for the possession in case of notional or symbolic possession. As after the auction the bank is completely non cooperative. In some of the cases it takes many years’ time to get the possession. The time taken can be long years wait or you may have to file a court suit to get physical possession.

Step 4: Submitting the tender form:

The buyer should collect the tender forma and deposit the Earnest Money Deposit (EMD) along with the form. EMD can be deposited through Banker’s Cheque or a DD (Demand Draft). Kindly check complete details mentioned in the Tender Form before submitting your Tender before the mentioned closing date of the Tender. You need to submit your KYC documents as well to the bank along with Tender form. There is a very small time frame hence you should keep all the required documents ready in advance. An incomplete Tender form always gets rejected, either the KYC documents are incomplete or the Tender form is not properly filled, which results to rejection of the Tender form.

Step 5: Bidding in the Bank Auction.

Bid can be submitted in multiple ways. Submitting the bid through bidding form. In many cases the Tender form and Bid form, both are same so you can submit your bid through a Tender form itself. If you are willing to submit multiple bids you can submit separate tender form or bid form. At some places the tender form is physically submitted, and the Bid form is submitted online. Banks allow competitive bidding in certain cases, where the bidders can increase the final bid amount. In the online E-auction bidding, multiple times bidding can be done during the window of E-auction. E-auction is the only standard bidding process, it is the sole decision of the auctioning bank.

Step 6: Date of Auction:

Visit the auction website / Auction bank branch / Auction Venue on the Auction Date to check whether you won the bid for 1 BHK Bank auction flats in Malad for sale. Bank opens all eligible bids in front of the bidders if you have submitted the bids through bid form or tender form. The one who is the highest bidder is announced as the winner for 1 BHK Bank auction flats in Malad for sale. Once you win the bidding, you have to deposit 25% of the bidding amount and the EMD amount within 24 hours. The balance bid amount of 75% has to be deposited within 15 to 30 days from the Auction date. If you want to take the property against a Home Loan then we advise you to take the loan from the auctioning Bank only. Normally most of the Bank auction close without home loans as Home loan is a risky proportion. As Banks do not wish to lend a loan on foreclosed properties. Hence because of tight timelines, it is suggested to not to depend on the Home Loans.

Step 7: Certificate of Sale

Once the balance payment of 75% of the purchase amount is made, the buyer receives sale certificate from the bank but unless you submit the sale certificate in the sub – registrar office, the title transfer is not complete.

Step 8: Registering the Sale Certificate in Sub-Registrar office

The buyer has to register the sale certificate with in the sub registrar office. You should insist to include the defaulter as the confirming party. At the time of the property registration, the sale certificate should be duly signed by the authorized bank Executive.

Important Points related to process of 1 BHK Bank auction flats in Malad for sale:

1. The schedule of bank auctions is after 30 days from the date of Auction Notice. The process gets cancelled if the defaulter pays the outstanding money to the bank within this 30 days then the auction gets cancelled.
2. Your entire amount is forfeited that is the EDM and 25% deposit money, by the bank if you fail to pay the balance 75% amount within the given timeline by the Bank.
3. PSU (Public Sector Unit) Banks auctioned properties are cheaper as compared to the properties auctioned by Private Banks.
4. At the end, it is suggested to avoid aggressive bids during bidding process. You should have an idea of the current market price of similar properties, to take care of this point.