2. Borrow money from relatives and friends If the money is really tight, you can ask relatives and friends for help. Whether you can borrow it or not, you must try it first, but you must borrow a good loan and pay it back in time when the economy is well off.
3. As a last resort, collateral can only be auctioned. This is the last resort. Naturally, we don't want our house to be auctioned. Perhaps for many people, this is the only property we don't want to lose, but if there is no other way, we can only do so. After the collateral is auctioned by the lending institution, the proceeds will be used to repay the loan principal and interest first, and the rest will be returned to you.
Housing mortgage in the Civil Code is not how to deal with real estate.
If the debtor fails to pay, the creditor may not directly possess the collateral:
Perhaps many people think that since the debtor is unable to repay, the claim that the house should be owned by the creditor is reasonable, but it is actually illegal and invalid.
China's "Guarantee Law" clearly stipulates that when a creditor and a mortgagor conclude a mortgage guarantee contract, they shall not stipulate in the contract that if the debtor cannot repay the debt at the expiration of the debt performance period, the collateral shall be owned by the creditor.
In the mortgage guarantee contract, all similar clauses will be invalid because they violate the law, and because such clauses belong to the main clauses of the contract, if the main clauses of the contract are invalid, the whole contract will be invalid, so this kind of mortgage guarantee contract is invalid.