Legal analysis: After mortgage loan, the property used for mortgage loan may be auctioned. When the borrower cannot get 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.

Legal basis: Article 47 of People's Republic of China (PRC) Urban Real Estate Management Law refers to the act that the mortgagor provides the mortgagee with debt performance guarantee with his legal real estate without transferring possession. When the debtor fails to perform his debts, the mortgagee has the right to be paid in priority with the proceeds from auction of mortgaged real estate according to law.