1. The property certificate showing "the house has been mortgaged" means that the ownership of the house has been mortgaged to the lending bank.

2. When purchasing a house with a mortgage loan, the house purchased with the loan is used as a mortgage. If you apply for a mortgage loan from a bank, the mortgagee is the bank.

3. When the home buyer cannot repay the loan on time, the bank has the right to sell or auction the mortgaged property and use the proceeds from the sale or auction to offset the bank's debt.