Buying a bank-auctioned (foreclosed) property

What a bank auction is

When a borrower defaults on a secured loan, the lender can take possession of the mortgaged property and sell it to recover dues under the SARFAESI Act, 2002. These 'foreclosure' or auction properties can sell below market, which is the attraction — but they carry risks a normal purchase doesn't.

Where the official listings are

MyStreetBiz does not list properties. Bank-auction properties are published on official portals and the banks' own e-auction pages — start with IBAPI (the Indian Banks Auctions Mortgaged Properties Information site) and the government e-auction platforms.

Treat any third-party 'foreclosure listings' site with caution — the authoritative source is the lender's own auction notice and the official portals.

How the process works

• The bank publishes an auction notice with a reserve price and inspection date.
• You deposit Earnest Money (EMD) to participate and bid at or above the reserve price.
• The highest bidder pays a part immediately and the balance within a set window, then gets a sale certificate.

The extra due diligence

• Possession type: 'symbolic' possession means the occupant may still be there and eviction can take time; 'physical' possession is cleaner.
• Pending dues: unpaid property tax, society maintenance, or utility bills can transfer to you — check before bidding.
• Title: verify the title chain, an Encumbrance Certificate from the state IGR office, and the bank's authority to sell, exactly as you would for any purchase.

Auction properties are usually sold 'as is, where is, whatever there is' — there is little recourse afterwards, so the diligence has to happen before you bid.