The bank's loss, your gain

Summary: Bank-auctioned properties offer steep discounts, but the process is far from straightforward. This guide walks through how these deals work and the critical checks buyers must make before placing a bid.

Summary: Bank-auctioned properties offer steep discounts, but the process is far from straightforward. This guide walks through how these deals work and the critical checks buyers must make before placing a bid. Markets, buyers in other locations still find developers offering discounts of 10-15 per cent to move unsold inventory. But if you know where to look, you can do better. Properties repossessed by banks are routinely sold through auctions at prices 20-30 per cent lower than the prevailing market rate, regardless of where the broader market stands. Under the SARFAESI (Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest) Act, 2002, banks can auction ‘stressed’ properties to recover their loans. They seize these properties after the borrower misses multiple payments. Since banks auction foreclosed properties primarily to recover the outstanding principal and interest, such properties are often available at attractive discounts. Buying at a bank auction, however, can be nerve-racking for a first-time home buyer unfamiliar with the rules and procedures. A large number of investors and buyers compete at every public auction, all hoping t

This article was originally published on May 01, 2026.