Is it permissible to purchase an asset (car or property) which the bank has repossessed?

Answer

If the bank which had repossessed the house is a non-Muslim one, then the purchase of the property is permissible. If the bank is Muslim-owned, e.g. Albaraka Bank, Oasis, etc., then it will be permissible to buy the item if it is sold for its market value or more, not for less than this. The creditor has a right to payment. If the debtor refuses or is unable to pay, and he applies to the Qaadhi, the latter will attach assets of the debtor, but he may not sell such assets under the market value or for a song as is the prevalent practice. Another factor for the permissibility is that an extra bidder will enhance the price thereby benefiting the debtor. And, Allah knows best.