Frequently Asked Questions
- All Categories
- Stressed asset
- Financial institutions
- Investment options
- Notice terms
- Payment schedule
- Post payment process
- Property visit report
Borrowers of secured loans mortgage their property with banks. When the borrower does not pay their dues even after providing multiple options to repay and restructure, banks put up these assets for auctions.
All they need is payment from a bank account and register at full sale price. There could be increased stamp duty so this is factored. Also, Banks don’t spend on sales and marketing, which they pass on to the buyer.
To recover money that loan defaulters failed to repay. Banks do not have the intent to selling property for making profits out of it.
Bank or institution who published the auction notice is the transferor. Not the borrower. Bank’s representative will go with you for registration of the property
Bank or institution who has rights on the assets in-lieu of borrower defaulting as per SARFAESI act is the seller.
There are no restrictions on investments. You can invest in as many properties you want.
Banks provide 2-4 weeks’ notice for auctions and 2-4 weeks to pay the balance purchase value. Once a bank receives full consideration, they issue a sale certificate within 4- 5 working days.
When you buy a stressed asset, you will have absolute rights to title and possession rights for that property. Borrower has no right whatsoever.
Financial institutions selling these properties are 100% transparent on any known encumbrances and liens. Every stressed asset being sold goes through 4-5 validations on title before being put up for sale.
Yes, they are safe.
There is no delivery risk as these are sold on as-is basis.
They only need to be bought with money from banking channels. No cash so no risk of unsecured advances.
The registration is done by the Bank at full purchase value.
Banks have the legal possession rights but may not always take possession before sale as there’s cost and maintenance involved. Possession status is usually mentioned in the notice, else can be enquired from the authorized officer.