Generally, the default in payments of EMIs for a home loan is a person’s last resort. So, it is very likely that the homeowner must have defaulted on paying local taxes and social charges. Since the homes are sold under ‘as it is where it is the basis,’ it is the responsibility of the proposed buyer to discharge such outstanding dues. Always ascertain extraordinary amounts in respect of society charges and municipal taxes in case these returns are to be made by the property buyer itself. Bidding for a property without recognizing the liability of such dues may intensify your cost.
In the case of a property sold by a bank, the legal titles are not with the bank. Also, the bank doesn’t take responsibility for the title as it doesn’t become the owner of the property just because it has attained over possession of the property, so when buying a property, it is always advisable to get the ownership of the title to the property adequately investigated by a lawyer. This may incline your cost a little, but it is better to spend more early on than to go through troubles later.
In case of an under-construction capital or even for a ready flat, the payment schedule is generally convenient or is decided by mutual consideration. However, in the event of a sale, if your bid for the property is successful, you have to pay the balance sum at a moderately shorter notice. Should you default, you might lose your earnest money deposit. Hence, it is essential to plan the funding of purchases, like these, well in advance, with adequate provision for the accident.
You can also get a house loan for such property, but you have to arrange for the full auction amount first from your sources, and then the house loan lender can issue the cheque. In case, you intend to take a house loan for such property; you should acquire an in-principle approval for the loan value based on your income.