In practice, only the individual mortgage loan of pre-selling commercial housing needs the developer-as the seller, as the "loan guarantor".

The principle is that the target of the pre-sale contract (that is, the house and the total price) is priced according to the people who can live after the completion, the borrower's collateral is the house, and the bank calculates and issues loans based on the total price of the house. However, if there is an accident during the construction process, the project will be paralyzed and become an "unfinished building", and the borrower may not be able to repay the loan. What should the bank do? Spent a bunch of bricks (instead of ready-made houses) on auction? How much can I sell? Therefore, the developer will be "locked" as an advance fund until the house is completed, the collateral is formed, the borrower obtains the real estate license, and the developer's guarantee responsibility is terminated.

From now on, the bank will not be afraid that your borrower will not repay the loan. The reason is simple, and everyone understands it.