"PHYSICAL" OR "SYMBOLIC" Possession - Which is better?

"PHYSICAL" OR "SYMBOLIC" Possession - Which is better?

Buying an auction property can be an attractive option for many buyers as it can provide an opportunity to purchase a property at a lower price than what it might sell for on the open market. There are several aspects to keep in mind, but you should know that there is such a thing as "physical possession" and "symbolic possession" of properties with banks and, it is critical that you know the difference between the two before bidding. We'll try to explain the difference between the two and also, what in our opinion is a better choice for you.

The terms "physical possession" and "symbolic possession" are often used in the context of property auctions involving banks. Physical possession refers to situations where the bank already has direct physical possession of the property, and the purchaser can receive possession of the property directly from the bank. This means that the purchaser can take possession of the property immediately without any delay or waiting period after winning the bid.

On the other hand, symbolic possession refers to situations where the bank does not have physical possession of the property at the time of sale, and the bank is in the process of obtaining physical possession from the borrower. This means that the purchaser may have to wait for the bank to take possession from the borrower before they can receive possession of the property.

The process for the bank to obtain physical possession of the property can vary depending on the circumstances. In some cases, the bank may be able to take direct possession from the borrower without the need for any legal process. In other cases, the bank may need to go through a legal process to obtain possession of the property, such as an eviction or foreclosure process.

In general, physical possession is always better for the purchaser as it allows them to take possession of the property immediately without any waiting period. However, in some cases, symbolic possession may be the only option available such as when the property is still occupied by the borrower or is in the process of being foreclosed. If you are considering purchasing a property with symbolic possession, it is important to confirm with the banker the duration it will take for the bank to take possession and where exactly the bank is in the process. This will give you a better idea of the timeline for the transaction and any potential delays you may encounter.

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