1. If the bank loan is overdue, the court has the right to seize the collateral according to law and auction and sell it to the outside world. After the mortgaged property is discounted, auctioned or sold, the part whose price exceeds the amount of creditor's rights belongs to the mortgagor, and the insufficient part is paid off by the debtor.

2. According to Article 195 of the Property Law of the People's Republic of China

, if the debtor fails to perform due debts or the mortgage right is realized as agreed by the parties, the mortgagee may agree with the mortgagor to discount the mortgaged property or give priority to compensation with the proceeds from auction or sale of the mortgaged property. If the agreement harms the interests of other creditors, other creditors may request the people's court to cancel the agreement within one year from the date when they know or should know the reasons for cancellation.

if the mortgagee and the mortgagor fail to reach an agreement on how to realize the mortgage, the mortgagee may request the people's court to auction or sell the mortgaged property.

if the mortgaged property is discounted or sold, it shall refer to the market price.

Article 196 Where a mortgage is established in accordance with the provisions of Article 181 of this Law, the mortgaged property shall be determined when one of the following circumstances occurs:

(1) the debt performance period expires and the creditor's rights are not realized

(2) the mortgagor is declared bankrupt or revoked

(3) the circumstances agreed by the parties to realize the mortgage right

(4) other circumstances that seriously affect the realization of the creditor's rights.

article 197 if the debtor fails to perform the due debt or the mortgage is realized as agreed by the parties, resulting in the mortgaged property being seized by the people's court according to law, the mortgagee has the right to collect the natural fruits or legal fruits of the mortgaged property from the date of seizure, unless the mortgagee fails to notify the obligor who should pay off the legal fruits.

the fruits specified in the preceding paragraph shall be used to offset the fees for collecting fruits.

article 198 after the mortgaged property is discounted, auctioned or sold, the part of the mortgaged property whose price exceeds the amount of creditor's rights shall be owned by the mortgagor, and the insufficient part shall be paid off by the debtor.