What should I do if the house is demolished before the mortgage is paid off? Two options

1. If the loan has not been repaid during the house demolition, you still need to continue to repay the loan during the house demolition. After receiving the demolition funds, you need to give priority to repaying the loan. In addition, relevant laws and regulations are as follows: However, banks have priority in receiving reimbursement. In other words, after the owner receives the demolition compensation, he should give priority to repaying the bank loan. (Even if the bank collateral is destroyed, some banks will acquiesce not to repay the loan in advance and continue to maintain the lending relationship and repay the loan normally)

2. If it is non-monetary compensation, it is the resettlement house you want. . The demolition party must assist the demolition households (that is, you) to clear their debts with the bank or convert the collateral. The demolition party needs to clear the bank debt and sign a demolition agreement with the owner before it can obtain the right to demolish the house. For owners who choose property rights replacement for resettlement housing, the demolition party should assist the owners to convert the houses originally mortgaged to the bank into resettlement housing and sign a new housing mortgage loan agreement with the bank.