Guide to Buying Properties through Bank Auctions

Investing in real estate has always been a promising investment for many. Bank auction is an age-old practice but with the evolution technology and ease of online transactions, investing in auction properties has become very popular. New as well as seasoned investors now prefer buying properties online through auction sites.

FindAuction has simplified the online process further by aggregating all bank auction assets under one single site. By browsing through the listings categorised by City, State, Bank, and Type of Property, you can easily arrive at the investment of your choice. Below is a basic guide to purchasing foreclosure bank auction properties: -

• SEARCH THE WEBSITE FOR PROPERTIES THAT INTEREST YOU

  The best part about searching for properties online is the convenience of finding as many possible auction choices as there might be. You can look up properties near you, in your city or anywhere else across the country. Once you have narrowed down your choice, you can seamlessly transition to the authorised online bidding platform or e-auction site which is provided within the former website such as on FindAuction.in

• RESEARCH THE PROPERTY THOROUGHLY BEFORE YOU BID

  The online website on which you are looking for the properties will provide you as much information as possible about the property. However, it is recommended that you conduct your own due diligence to weed out any doubts about the property you plan to bid on. Go through the bank’s website that is auctioning the property to look for any additional information they may have listed for that property.

  Visit the property and see first-hand for yourself the physical state of the property. Occasionally, you might not like you see and it’s always best to change your mind before you place your bid. Seek advice from local brokers in that area and of neighbours or any other independent, experienced auction investors.

• RESEARCH THE PROPERTY THOROUGHLY BEFORE YOU BID

  After confirming the property you plan to invest in, proceed to the e-auction website by clicking on the link provided on the primary auction site and register yourself. After registering on the e-auction site, you will be required to submit the relevant documents and pay the Earnest Money Deposit (EMD) amount to the bank. The payment needs to be made prior to the date of registration for the EMD to participate in the auction. Finally, bid on the auction date.

• POST WINNING THE BID

  If your bid wins at the auction, you are given a day to deposit 15% per cent of the amount to the bank. So ideally, you should set aside 25 per cent money of the reserve price. In case you fail to deposit this amount in the stipulated time, your EMD will lapse. However, if you have managed to deposit the 25 per cent, then next you will receive another two months to arrange for the remaining 75 per cent of the amount. Just in case if you are wondering if banks offer loans on auctioned properties, then the answer is YES they do offer loans on auctioned properties. But again, for any reason if you are unable to pay the remaining 75 per cent in the two months then, your previously deposited 25 per cent too will get forfeited.

That’s all there is to buying properties through a bank auction. It might sound complicated at first, but quite a few people have tried and successfully invested in auction properties. Today, with the advantage of having all auction properties listed in one place, the process has is more simplified and convenient than ever before

Here (link to another page) are some Best Practices for you to keep in mind before participating in an auction.

Yet, if you have any queries or need support in taking that first step towards investing in an auction property, then we’re here for us. Drop us a mail about your concern or any questions that you may have at hello@findauciton.in and we’ll get back to you at the earliest.