Auction of mortgaged property
گروی جائیداد کی نیلامی
Banking
Auction of mortgaged property is the public sale of a borrower's mortgaged asset to recover an unpaid loan, which a financial institution may carry out under the Ordinance with or without the Banking Court.
What does Auction of mortgaged property mean in plain words?
On default the bank sends demand notices, including a final notice, then has the property valued and advertises the auction in an English and an Urdu newspaper. The auction cannot take place until three business days after the notice. After a decree, the bank can also sell the property under the decree without a further court order. The proceeds go towards the outstanding amount.
When will I hear Auction of mortgaged property?
After the final notice went unpaid, the bank sold the mortgaged factory by public auction.
Which law covers Auction of mortgaged property?
Sections 15 and 19, Financial Institutions (Recovery of Finances) Ordinance 2001