Legal analysis: comments on second-hand houses: high loans are illegal and suspected of financial fraud. According to the relevant information in the Criminal Law of People's Republic of China (PRC), the crime of loan fraud refers to the act of fabricating false reasons such as introducing funds and projects, using false economic contracts, false certification documents, using false property rights certificates as guarantees, repeatedly guaranteeing beyond the value of collateral, or defrauding banks or other financial institutions of loans and large amounts in other ways.

Legal basis: People's Republic of China (PRC) City Real Estate Management Law.

Article 36 When transferring or mortgaging real estate, the parties concerned shall register the ownership in accordance with the provisions of Chapter V of this Law.

Article 62 When a real estate is mortgaged, it shall be registered with the department designated by the local people's government at or above the county level. Where the land use right and house ownership are obtained due to the disposal of mortgaged real estate, the transfer registration shall be handled in accordance with the provisions of this chapter.