Beware the risks of buying a house in an auction
While you can land a very good bargain in an auction at times, you might need to deal with illegal occupants and dues on the property
Many buyers chase properties that banks auction to recover the loan dues from borrowers who fail to repay. Reason: These come at a 10-25 per cent discount to prevailing property prices in the area. While auctioning, the bank that has foreclosed sets a reserve price.
This is usually based on the price at which the property was bought and the loan dues. If there's a house costing Rs 1 crore that's put on the block, the reserve price can be between Rs 75 and Rs 90 lakh. The process for most banks is done online in a transparent manner. Banks give an advertisement of such houses in the ...
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First Published: Sat, August 13 2016. 22:20 IST