If the mortgagee is not paid off at the expiration of the debt performance period, he may negotiate with the mortgagor for discount or be compensated with the price of auction or sale of collateral. If the agreement fails, a lawsuit may be brought to the people's court; If the pledgee is not paid off at the expiration of the debt performance period, it may agree with the pledger to discount the pledged property or auction or sell the pledged property according to law to pay off the creditor's rights.

The liquidity of mortgage loans is usually 50%-70%; In pledged loans, such as certificates of deposit and government bonds, they are basically 100%, and stocks and corporate bonds can reach 60%-70%.

2. Validity period

If the parties voluntarily register the mortgage, the mortgage contract shall take effect from the date of signing; The pledge contract shall take effect from the date of delivery of the pledge or the certificate of rights.

3. Possession mode

Mortgage loan is a form of loan that does not transfer the possession of the property provided by the debtor or the third party, but only uses it as collateral; In principle, the possession of the pledged loan should be transferred to the pledgee. Because mortgage and pledge are different in whether to transfer or not. So there is a big difference in management.

4. According to different objects

What can be used as collateral is property, including movable property and immovable property, such as houses, machines and means of transportation owned by mortgagor and entitled to dispose of according to law, state-owned land use right contracted according to law and mortgaged with the consent of contractor, land use right of barren hills and wasteland, etc., while what can be used as pledge is rights, including bills of exchange, checks, promissory notes, certificates of deposit, warehouse receipts, bills of lading, shares and stocks that can be transferred according to law, exclusive right to use trademarks, patents and copyrights.

5. Differences between registration departments

If the parties handle mortgage registration, the registration department shall be the corresponding management department of the collateral; Where shares or intellectual property rights are pledged, the parties concerned shall register the pledge with the corresponding management agencies.

Mortgage and pledge are two different ways of guarantee, and their legal consequences are different.

(1) Mortgage refers to the real right that the debtor or the third party does not transfer the possession of its specific property and takes the property as the guarantee of creditor's rights. When the debtor fails to perform the debt, the creditor has the right to discount or give priority to paying the auction or sale price according to law.

(2) Pledge refers to the real right that the debtor or a third party gives his specific property to the creditor for possession as a guarantee for the creditor's rights. When the debtor fails to perform the debt, the creditor has the right to discount the property or auction or sell it, and give priority to compensation.