Buying property mortgaged in bank

Querist : Anonymous (Querist) 21 January 2012 This query is : Resolved
Sir my neighbors son mortgaged his family property with a bank for trading loan. As he suffered losses and could not repay the loan the bank has taken possession(symbolic) of this residential building comprising of ground and two floors.The auction date has also been fixed. I want to buy this property.When I informed the neighbour of my intention of attending the auction to buy the property he says that upset price fixed by bank is very low and he would file a suit and get the sale annuled even if I buy it.Apart from that getting possession from him is very difficult.But when I approched the bank they say that they would arrange possession(as it is occupied by defaulters) and convey perfect title.At this juncture I want to know who is saying the truth and can I trust the banks words?
I dont buy the theory of borrower because he wants to ensure that his property is not sold at any cost.

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Raj Kumar Makkad (Expert) 21 January 2012
You have answered yourself that the borrower should not be believed then what more query remains?

If bank offers possession free from all encumbrances with auction sale then there is no requirement to approach the borrower. It is the duty of bank to do so.

M/s. Y-not legal services (Expert) 21 January 2012
whats your main intention?

do you want to help to your neighbor or do you want to purchase it for a low price?

-tom-

Querist : Anonymous (Querist) 22 January 2012
Thank u very much makkad sir. The problem is if he starts a litigation to cancel the sale and to protect his possession I would be in a trap after having invested huge sum over it.Because disposal of the same might take years.The upset price set by the bank is a bit low.Mr,Tom is right I want to buy that property as I am getting it cheap. My query is does bank have mechanism to protect the auction purchaser of his title or not?

Shailesh Kr. Shah (Expert) 22 January 2012
My query is does bank have mechanism to protect the auction purchaser of his title or not?
Answer: Read again reply of Mr.Makkad.

V R SHROFF (Expert) 22 January 2012
Mr Raj already cleared query.

Raj Kumar Makkad (Expert) 22 January 2012
If bank is ready to provide you possession with all rights then there is no legal hurdle to purchase such flat.

No seller including bank shall ever come to the protection of the buyer once the contract is complete. You shall have to come for your rescue. Do not depend upon others. If you have full satisfaction over the whole issue, only then move ahead otherwise bank has not sent you personal invitation to purchase such property.

If you require some more clarification, personally go to concerned bank and discuss with the officials there instead of raising your query here because correct answer shall be given by bank only.

I think you shall follow my point.

Querist : Anonymous (Querist) 22 January 2012
Makkad sab u rightly said that bank did not invite me to purchase the property,but it is my greed which is forcing me buy this. I just wanted to find out the pitfalls involved in this transaction and u have elucidated the drawbacks with ur observation that I have to face the consequences once the transaction is complete. Thanks a lot Makkad sab for ur reply.

Devajyoti Barman (Expert) 22 January 2012
A validly called auction and sale out of it does give propert title to the highest bidder.
But do keep in mind that it may be the focal point of several suits if the actual owner in future challenges it the court of law.

DEFENSE ADVOCATE.-firmaction@g (Expert) 22 January 2012
As of now lenders can not give clear title and thousands of such cases after auction in courts .

That is why new amendment is coming to solve this problem, unless it is law you are in trap.

Querist : Anonymous (Querist) 22 January 2012
JSDN sir can u clarify the nature of relief the amendment is going to give to the auction purchaser. Would the new amendment not allow the borrowers to challenge sale? Would the amendment give the auction purchaser an unassailible title? If it is to be enforced in short time I may have revise my opinion of not going to purchase this particular property . Sir pl reply immediately.

Buying property mortgaged in bank

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