I deposited money for buying property in bank auction. Is this correct? Also when I have to pay money? Can I get loan for that?
When you participate in a bank auction, you might be asked to deposit earnest money. This is usually like a down payment and will be 5%-10% of the reserve price. In case you win the property after bidding but fail to pay the property price, you will have to forego your earnest money. Note that once the earnest money is in place and you win the bid, banks will need you to pay an additional 15%-20% of the reserve price within 2-3 working days. The rest might need to be paid within a month. That is why you should always ensure that you have money on hand to pay for the bid. Banks might not accept EMIs for auction properties.
You can, of course, get a Home Loan for such a property. But the same bank might not agree to give you the Home Loan. It is best to approach another lender for getting your loan. Ideally, you should have got a pre-approved loan for the tentative property value. However, you can still approach another lender and get a Home Loan so that you can buy the property and not lose the earnest amount.
Looking for a Home Loan? Click here.