Legal basis: Article 46 of People's Republic of China (PRC) Urban Real Estate Management Law: "When the debtor fails to perform his debts, the mortgagee has the right to be paid in priority with the proceeds from the auction of mortgaged real estate." 1. When the borrower cannot obtain a loan, the lending institution can auction the borrower's property, and the proceeds from the auction will be used to repay the loan. It should be noted that if the income is not enough to pay off the loan, the lending institution will recover the insufficient part. 2. What will happen after mortgage? If the borrower does not pay back, this situation will be recorded in the credit information system of China People's Bank. Borrowers who apply for credit cards will be rejected in the future. In addition, it also affects the spouse's credit.