The establishment of mortgage is to ensure the realization of mortgagee's creditor's rights. In order to safely recover the money lent by the bank, the bank requires the borrower to provide collateral. When buying and selling mortgage loans, buyers usually use the purchased houses as collateral. When the loan cannot be repaid on time, the bank has the right to auction the house at a fixed price and repay the outstanding loan at this price.
Generally speaking, the bank will sue first, then entrust an asset management company or auction your house directly. The asset management company will pay the remaining debts to the bank, and the house will be completely owned by the asset management company. The auction and lease of houses will be decided by the asset management company.