This seems to be a deliberate cheating on her part y giving the whole extent of property for the purpose of loan. Therefore the property on offer for sale by the bank is not proper neither the deeds are valid because it appears that the fraud has taken place at every place hence you will not be ale to rectify the mistakes at any stage in the future.

In my opinion the property offered for sale by bankers do not seem to be genuine due to the debtor's fraudulent act, hence without taking an opinion from a lawyer, you may not venture into the purchase of the property.

Check the details of mortgaged property and deeds which are pledged in the bank.Especially check the possession certificate, Basic tax receipt Encumbrance certificate.

As per your query, the sale has done without proper identification of the property, it will start a new litigation between the third party, who occupy the portion of the property with the bank and you. You can't sue against the mortgagor for cheating. Only Bank can sue her if she forged any document for getting the loan from the bank.It is your duty to identify the property for the sake of money and time.

1) the bank cannot sell propertyas per old boundaries as the mortgagor had sold the land partly to third parties

2) even if bank auctions entire property it would be subject matter of challenge by the purchasers of part of land

3) don't purchase the property in auction

1)bank ought to have carried out survey of the land before auctioning it

2) mortgage by lady must have been only for balance land not sold by her

3) don't waste your hat earned money in purchase of the said property

4)your suit for rectification of boundaries may not be fruitful

You should not be lured to such privileges or concessions. The property may be attractive but the attached legal complications cannot be solved despite spending the benefited amount till the end. The bank will wash away the responsibility after selling it also the bank being a organisation one after the other staff will give some lame excuses and vanish leaving you to toil in lurch.

Even if you sue that lady she will recluse herself stating that the bank have done the mistake or you should have verified the document before purchase.

You can decide accordingly if you insist on your desire to buy this property with legal complications shrouded around it.

1. The title will pass to you only to the extent which is mortgaged by the borrower of loan. The part of the property which has not been mortgaged will not pass even if it has been made part of the demand notice issued by the bank. It is basic law that no one can convey what he does not have.

2. The actual possession of the property is immaterial in so far as the passing of title through auction is concerned. The test is the property which is mortgaged by her.

3. After the auction she will cease to have any legal liability. Your remedy will be only against the bank.