Legal analysis: Yes. Mortgaged houses can be sold and belong to second-hand housing transactions. Banks usually stipulate that loans for less than one year should pay liquidated damages, and loans for more than one year should not be paid. The seller can use the down payment paid by the buyer to go to the bank to repay the loan in advance, go through the mortgage formalities, and then handle the transfer.

Legal basis: Measures for the Administration of Commercial Housing Sales Article 30 A real estate development enterprise shall, in accordance with the contract, deliver the commercial housing that meets the delivery conditions to the buyer on schedule. If the delivery is not made on schedule, the real estate development enterprise shall bear the liability for breach of contract.

If the delivery needs to be postponed due to force majeure or other reasons agreed by the parties in the contract, the real estate development enterprise shall promptly inform the buyer.