Pay Over 25% Less
Bank Auction properties are approximately 25 % cheaper than market price.
In theory, a loan is a simple transaction where a borrower wants money, and a lender advances it and collects interest on it and this arrangement continues until the loan is repaid by the borrower. In practice, however, it is observed that there are defaulters and they ruin the lenders financials. While in case of secured loans the borrower offers collateral such as real estate or machinery which serves as a security to the lender, authorizing it to seize and sell the asset to recover its money, in the event of default in repayment of loan by the borrower. The loan accounts where the borrower fails to repay the loan, then this asset becomes Non performing Asset (NPA).
Mortgage : The lender can foreclose and take ownership and hold the property.
Hypothec: the lender does not have the right to take ownership of the property – only to sell it and take what’s owed from the proceeds.