Can I Purchase A Property That Is Mortgaged With The Bank?

Yes. You can do that.  Approach a lawyer in your area, he will help in drafting the requisite to secure your interest.

The answe to ur query is as follows

(a) If the sale is conducted by public auction by the authorised officer of the bank, u need to submit ur bid for the purchase of the tproperty. If you are the highest bidder, the bank will declare u so and u have to make the payment as per the letter issued by it. On complete payment of the amount,  the legal title will vest in u  on the issuance of a salle certificate in ur favour. Alternatively

(B) You may approach the bank for selling the property through private treaty by making ur offer to the bank.

  If u acquire the property in the above manner the mortgage liability will not pass on to u

vsv.rao

Thanks Gundlapallis and Rao ji. It is not through a public auction. I met the bank they said that I can make an MoU with the seller and include these clauses in the sale agreement. So basically I will be paying the money to the seller so he can clear the loan amount and then pay the remaining amount to acquire the property in my name. 
 

I will surely be contacting a property lawyer for this, but still wanted to know more to be sure and safe on my own. Has anybody dealt and actually done such a thing themselves? 

Thanks so much. 

The MOU method is a bit risky instead u pay the money directly to the bank on his behalf and collect the documents and Noc from the bank and  immediately u take him to sub registrar office and get the mutation done, so that he would not create further charge  towards the property. 

You must have a tripartite agreement with bank, mortgagor & purchaser, for purchase of the property already attached under SARFAESI Act.  Bank can sell the said property to you under 'private treaty' without public auction or publication of sale notice as per SARFAESI Act, provided the mortgagor consented for the same.