Buying a property is everyone’s dream. When one wants to buy a property that is under auction, you can save as much as 30 percent on the market value. The saving is substantial indeed. Looking at the increasing cases of npa in india, there are various opportunities for buying NPA properties. However, it is important that you tread with utmost care while doing that.
What should you expect from it? Well, you should always remember that it is a repossessed property that belongs to a default mortgage borrower. It has been taken over by the financial institution or bank under the npa recovery process. You can legally own it at a discounted value. But you must be aware of the risks associated to it such as:
- Ongoing legal disputes about ownership
- Repairs and maintenance
Thus, the final amount that you pay may be more than the final bid.
Take the following steps to buy a property that has been auctioned under npa account settlement.
- Do a thorough homework before proceeding for the bidding process.
- Make sure you do a correct assessment of your budget. You have to pay 10 percent of the reserve price as earnest money (refundable). If you win the bid, then 25 percent of the value has to be paid on the day of the auction. The full amount has to be paid within 15 days. So, you need to make arrangements for funds.
- You can either pay the amount from your pocket or avail a home loan. It is better if you consult the finance company or bank beforehand. When you buy a stressed property on loan, then the loan amount has to be exclusively used for buying the auctioned property only. Ask some npa consultant in india if you have any doubts.
It is not a difficult thing to buy a NPA property, the only thing is you need some preparation. As the npa management becomes stringent in India, more such properties will be available for buyers. It will be a golden opportunity for those who want to own a property at a reduced price.