A bank which has given a home loan to a borrower sends a notice to the borrower if he/she has failed to make the payment for six continuous months. This notice mentions the amount at which the bank has valued the property and the date on which the house will be auctioned. The auction usually takes place a month from the date of the auction notice. The auction price depends on the market value of the property and the value is determined by professional valuers. On this value of the property, the bank fixes a minimum bid price. If the price fetched post auction exceeds the bank’s dues, then the excess amount is refunded to the borrower.

Coming to the second part of your question, yes, a borrower can get back his/her property even after the bank has seized it. However, this has to be done before the auction takes place.

One can pay the dues even after the auction date has been declared and save his/her own home. However, it should be noted that the borrower has to pay any charges incurred by the bank for announcing the auction.