Law on Buying Confiscated Auction Goods

QUESTION:

Peace be upon you, and Allah mercy and blessings
What are the laws regarding buying a vehicle at a bank auction? As far as I know, this car came from a traffic jam.
Syukron wa jazakallahukhair Wassalamu’alaikum wr wb(+62 813-8502-xxxx)

ANSWER

Wa’alaikumussalam wa Rahmatullah wa Barakatuh

There are two types of confiscated goods:

1. Confiscated goods carried out by the state

These are usually smuggled goods, for example, or the results of corruption that are detrimental to the state. So, the state has the right to take and confiscate it, and it becomes state property.

innallaha ya’muru an tu’adul ahmanat look at Ahlihaa – Allah commanded that trust be given to its owner.

Then, if the state sells it then that’s okay, because they are free to deal with the item, whether it is sold at auction or not. Buying and selling by auction is permissible according to the number of days.

2. Confiscation due to bad credit.

– If at a bank or conventional leasing:

A person who does not complete or is unable to pay his installment obligations several times, then has his goods confiscated and becomes the property of the bank or leasing company, even though he has previously paid the down payment and several installments, then this is not permissible, this is unjust.

Because he ended up having nothing, the goods were confiscated, the money he paid in installments was forfeited, the down payment was also forfeited. So, we are not allowed to buy these confiscated goods.

If he is unable to pay, the bank should give him the opportunity to sell it and then pay off his debt to the bank. Or please confiscate but provide appropriate compensation. But the fact is that is not the case.

– If in pawnshop

The item that is pawned is a security, which does not originally belong to the pawnee, can be sold if the owner allows it at a suitable price. Then the money from the sale is used to pay the debt, if there is any remaining it becomes the property of the owner of the item being pawned.

Sheikh Muhammad Salih Al Munajjid said:

Whoever borrows or buys on credit, then abandons the mortgage, if the deadline has come and he does not pay, then the mortgage is sold with his permission, or with the permission of the authorities, and the debt is paid off, and the remainder becomes his, if there is still any value.

If someone borrows or buys goods on credit and leaves the goods as collateral, then if the due date arrives and the debt has not been paid, the collateral can be sold with the permission of the person concerned or the judge’s permission. The debt will be repaid from the sale proceeds, and the remaining money from the sale proceeds, if any, will be the right of the person concerned.

(Al Islam Su’aul which does not yet exist in Java. 285670)

Imam Asy Syarbini said:

(And justice will not sell a pawned item except for the equivalent price, immediately, of his country’s currency.)

And you cannot sell the pawned item except at a PRICE LIKE the value of the item, in cash, using local currency. (Mughni Muhtaj, 3/71)

God bless