Bank Auctions of immovable properties in India - procedures and role of Foreclosureindia.com -

Non Performing assets with Banks in India are increasing. Immovable properties / NPA's are being auctioned as per DRT / SARFAESI acts in India. ForeclosureIndia is Providing all the Bank Auctions details at one place for free of cost to all visitors.
By: foreclosureindia.com - internet Portal
 
Aug. 15, 2012 - PRLog -- 1)   What is the process of property auctions in India? Please give the sequence of events?
Ans: Mostly immovable properties are being auctioned under two acts in India, they are DRT act & SARFEASI act. Debt Recovery Tribunals are auctioning the properties under DRT act. The details of DRT’s and process are given in the following link. http://foreclosureindia.com/debet-recovery.html
Banks / Housing Financial institutions / Asset reconstruction companies  are auctioning the immovable properties under SARFEASI act and as per the procedure laid  specified.
Once the account is classified as a NPA the authorized officer designated by the secured creditor issues a demand notice u/s 13(2) of the SARFAESI Act for repayment of the outstanding dues as set out in the demand notice within 60 days. The borrower may raise objections to the said notice in writing within 60 days and the secured creditor has to consider and reply to the said objections u/s 13(3A).
In case of non payment within the statutory period of 60 days, the authorised officer shall thereafter be entitled to take possession of the secured assets u/s 13(4). Possession may be physical or symbolic. The authorised officer shall make a panchanama and publish the possession notice. He shall be required to carry out valuation of the secured asset and then proceed to sell the secured asset by public auction. However, the secured asset can also be sold by private treaty if the parties agree. Upon sale, the authorised officer shall issue the sale certificate.
Any person aggrieved by the action taken u/s 13(4) can file an application u/s 17 to the Debt Recovery Tribunal setting out the grounds or reasons on which the action is claimed to be wrong. The Debt Recovery Tribunal shall pass an order on the said application preferably within four months. Either party can appeal against the order of Debt Recovery Tribunal to the Debt Recovery Appellate Tribunal u/s 18 of the Act. No further appeal is provided there from, but one can prefer a writ petition to the High Court and Special Leave Petition to the Supreme Court.
2)      What is the role Foreclosure India in property auctions across India?
Ans: Foreclosureindia’s  role is
i.   Making wide publicity to Auction properties, guiding the interested investor about Auction process and see that more investors participate in Bank auctions and Banks clear their NPA’s.
Most of the Banks  are Auctioning the non performing immovable assets under SARFEASI Act. The efforts of Indian Banks and Housing finance institutions for disposal of Nonperforming assets are laudable as they are constantly improving the systematic adjustments necessary and progressing. However, the rate of success of selling of the properties through Bank Auctions is varying from around 40 % to 60 % depending on the city, market sentiment, political situations etc.  As per the observations during the last two and half years, lac of proper publicity is one of the major reason and Foreclosureindia.com is filling that gap.
ii.   Providing all the Bank Auction details available at one place. It is facilitating the investors to access the information from anywhere in the world and they are able to verify their requirements at free of cost very quickly.  
Are properties sold by Foreclosure India cheaper than their market value?
Ans: The properties sold through Foreclosures are generally 20 % to 30 % cheaper than the market price. The reserve price of the property is fixed by taking into consideration the distressed price of the property and the market price.
2)      What is the price range of properties that Foreclosure India deals into?
 Ans: Foreclosureindia.com is publishing almost all the Bank auction properties.  We are publishing all the Bank auction property details which are ranging from around 1 Lakhs to 256 crores.
3)      How can a property owner approach Foreclosure India for an auction?
Ans: Foreclosure is a process, in which Banks or Financial institutions will sell the non-performing assets under SARFEASI act or DRT acts in India.  As such property owner need not do anything for Auction of his property.
If a person seeks to sell a property against which loan is outstanding an article was published recently in Economic Times which covers all the major points. Please go through it.
http://foreclosureindia.blogspot.in/2012/06/how-to-buy-or...
4)      Since interest rates are high, there is uncertainty in jobs and the entire economic scenario, do you see a rise in the number of defaults?.
Ans : During some time in the month of June, we have analyzed this aspect,  based on the request from one financial news paper from, Mumbai. As per the data available with us & as per our observations, as of now there is no increase in the number of defaults. If the situation continues for more than 18 months only then the impact will show up on the increase of defaults.
5)      How are banks roped in? Do banks also approach you for property auctions?
   We have started our internet portal on 1.11.2009, i.e on the Andhra Pradesh formation day. We have approached all the 51 public sector and private sector Banks for giving their approval to display their Auction property details at very nominal price. We have also approached Housing Financial Institutions  and Asset reconstruction companies.  
   So far 11 public sector / private sector banks / Financial Institutions has given approvals to publish their auction properties across India  and  17 public sector / private sector banks / Financial Institutions has given approvals at Zonal level or Regional level. More than 90400 properties are listed from 33 major cities of India.
   Now some of the Banks are approaching us to display their Auction properties for making wide publicity.
End
Source:foreclosureindia.com - internet Portal
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Tags:Bank Auctions, Foreclosures, Free Foreclosure Listings, Property Listings, SARFEASI act
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