Your bank auction sale date can have serious implications for more than your property. It may impact your family, business earnings and life goals you’ve been building up for years. But what can you do between now and the date advertised for sale? An Urgent Auction Stay Application Lawyer will explain whether it makes sense to analyse the proposed sale process and apply for interim protection from the forum.
At the outset it’s sensible to have a clear understanding of your options. Find out what grounds are available, what deadlines apply, what the costs could be and what outcomes are realistically possible. The right lawyer will not offer certainty that an auction stay can be obtained, but should help you understand why interim relief might be available.
Will my property auction date arrive quickly?
YES. Just because you have received earlier possession notices or there are pending proceedings, that does not mean an advertised auction sale will wait for further discussions with the bank.
Take advice as soon as possible. An auction stay lawyer will check the enforcement proceedings used by your bank to see what requires urgent consideration. The timeline and existing orders will impact upon what relief may be available, so do not bank on finding a solution because each case is different.
Will my application automatically stay my auction?
NO. Your application itself will not postpone the auction date. If the tribunal believes you should be granted interim relief, it will issue an order specifically staying (suspending) the auction sale until further order.
A lender may be governed by SARFAESI directives, so your SARFAESI auction stay lawyer can advise on making the correct challenge and requesting relief from the Debt Recovery Tribunal. While time is of the essence, courts will not grant indefinite protection simply because an auction sale is imminent. Your chosen form should set out why the sale should not proceed and the remedy you seek.
Can everything be reviewed by my lawyer?
Yes. A competent lawyer will examine if your bank met SARFAESI requirements during the enforcement process. For instance;
• Was the Notice of Demand served correctly and in time?
• Did the lender give adequate publicity to the auction sale?
• Have they properly identified the property facing auction?
Have relevant valuation papers been retained and can the outstanding loan be justified? If your loan balance seems inaccurate, supporting documents will be required.
Remember, a distressed financial position or low auction price expected by the lender is not a reason to stop an auction. There may be grounds to challenge, but evidence is required to prove it.
Can your lawyer act on your behalf?
They can advise on the strength of any challenge and help you understand if it’s worth lodging an application with the tribunal. Unless you can negotiate a realistic repayment plan with your lender today, filing a legal challenge may prevent the bank from selling your property imminently.
Can I negotiate with the bank if I start legal proceedings?
You can continue to negotiate with your bank at any stage. A lender may be willing to accept offers, even from borrowers who have commenced legal proceedings against them. This will depend on the policy of the lender and your ability to pay a negotiated amount.
Simply offering to pay more money over time is not likely to achieve a postponement. If you’ve been told the auction will be delayed, has the bank provided a written confirmation to that effect? A phone call, or unattended letter/email is not a substitute for having the auction officially stayed.
Can running up payments/stay my auction date?
Potentially yes, but your lender bank may still have the right to proceed with the sale. Your legal advisor can explain what payment stops the auction and any default charges you may encounter for late payment.
If you do reach an agreement with the bank it’s sensible to discuss whether you need legal advice before signing anything. However you should not assume legal services will slow down negotiations or prevent you from meeting filing deadlines in court.
Documents to gather when speaking to urgent matter?
When you speak to lawyer make sure to have key information/documents to hand. This will include;
• the auction notice received;
• prior possession notices;
• your loan/account documents;
• repayment records;
• any loan repayment acknowledgements received from bank;
• correspondence with your bank/lender; and
• previous legal applications/rejections (if applicable).
If you have received a valuation for the property or any property you own which the bank is aware of, include this too. Remember to note when each notice was received or served, as counting dates begins from those dates. If the property has already been marketed to buyers, let your lawyer know.
Choosing the right lawyer for your urgent matter?
Everyone is different. You need a lawyer who will clearly explain your situation, realistic options and any shortfalls with your current position. Ask about your lawyers fees, costs to file an application, expected communication habits and documents needed for a preliminary meeting.
Don’t choose your lawyer based solely on who will provide an urgent order. Just because an order can be filed quickly does not mean it will be accepted by the tribunal. Good lawyers can explain tight deadlines, carefully review your provided documents and offer a candid opinion on what outcome you can expect from the tribunal hearing your matter.
FAQs
1.Can an auction which is scheduled for tomorrow be stopped?
Auction stays can be requested on an urgent basis. However, receiving the notice of filing, attending a hearing and receiving an order in your favour cannot be guaranteed overnight.
2.Can I stop my auction sale by contacting my bank?
No. You should receive written confirmation of any proposed date from the bank before relying on their word that the auction sale will be delayed. Unless advised otherwise speak to a lawyer about applying for a court order to stay your auction.
3.Can I challenge an auction after I’ve attended and placed a bid?
Depending on how far the sale hearing reached, there may be remedies available. Get urgent advice if you believe you’ve been affected by incorrect sale procedures.
4.Can you challenge an auction based on financial hardship?
Financial hardship is not usually a ground to challenge an auction. If you explain your financial position to your lawyer they will carefully consider if there are any legal grounds available to you.
5.Can anyone else speak to a lawyer about my impending auction sale?
Yes. If you have guaranteed a loan and the bank is now seeking to enforce against your property, you may also obtain independent legal advice.
6.Will making a token payment stop my auction?
No. Refer to number 2. Your lender may uplift the auction sale date based on payment, but they are under no obligation to delay the sale. Check your documents or speak to lawyer.
7. Should I show my lawyer an application that was previously rejected?
Yes. If you have made a previous application to court your lawyer should be made aware of the order made against you.
8. My loan amount is higher than stated at auction. Can bank enforce charged?
If you believe your lender has incorrectly calculated the loan balance, provide evidence to your lawyer. Incorrect auction amounts will be based on loans records. If the bank has included dispute charges ensure this is given to your lawyer.
9.Have specific questions about legal fees?
Make sure you understand how much your lawyer will charge for an initial consultation and their representation fees should you decide to continue with legal advice. File costs are also variable and should be confirmed when instructing your legal advisors. If your application is successful most tribunals will order the bank to pay you costs, but they may require you to pay costs if your application is rejected.
10.I negotiated with the bank. They agreed to reduce my debt. Isn’t this guaranteed?
No. Until a written and signed agreement is provided to you by the bank/lender you should not rely on receiving a reduction in your overall debt.
Conclusion
Contact DRAT lawyer for an assessment of urgent auction concerns. Urgent Auction Stay Application Lawyer The matter may be consulted with Advocate BK Singh.
Website - https://www.drtlawyer.com/
Read More -Apply For Urgent Stay DRT Lawyer For Auction And Possession?