SBI, the country’s largest banker is planning to conduct a massive e-auction on December 30, 2020, for mortgaged properties. If one is looking to obtain a prime property at a value much lower than the prevailing market rate, this SBI e-auction would be a god-send opportunity.
What are foreclosed properties?
Foreclosure is a legal process by which a lender attempts to recover the unpaid dues on a defaulted loan by taking ownership of the asset and selling it. The timelines to classify a loan as a default and the foreclosure process varies from country to country.
Generally, the foreclosure process begins when the borrower misses one mortgage payment. First, the borrower sends a notice stating that a payment has been missed. A demand letter is sent when two mortgage payments have been missed. At this stage, the borrower still has a chance to discuss with the lender and catch up on his missed payments. After 90 days of missed payments, a notice of default is sent to the borrower and the loan is handed over to the foreclosure department. Typically, the borrower has another 90 days to settle the missed payments and reinstate the loan. At the end of the reinstatement period, if the borrower has not caught up with his payments then the asset is foreclosed.
State Bank of India’s Mega e-auction
In the upcoming SBI e-auction, there are 1,107 properties ( 758 – Residential, 251- Commercial, 98 – Industrial) up for grabs within the next 7 days and 4,289 properties ( 3035 – Residential, 844 – Commercial, 410 – Industrial) within the next 31 days.
SBI E-Auction Process
There are a few formalities to be completed before one is eligible to bid for the properties via the SBI e-auction:
- Bidder Registration
- KYC Verification
- Obtaining valid digital signature
- Transfer of Earnest Money Deposit(EMD) amount to Bidder EMD Wallet
- Bidding process
- Auction results
SBI has published a list of partners on its website where one can obtain further details regarding the e-auction.
- C1 INDIA Pvt. Ltd.: https://www.bankeauctions.com/Sbi
- e-Procurement Technologies Limited: https://sbi.auctiontiger.net/EPROC/
- For displaying the properties: https://ibapi.in
- For auction platform https://www.mstcecommerce.com/auctionhome/ibapi/index.jsp