1. If the house recovered by the bank through court auction is enough to offset the mortgage, then naturally there will be no money owed to the bank. If the auction proceeds offset the mortgage loan, the bank will return the remaining funds to the customer.
2. If the bank's money from repossessing the house through court auction is not enough to pay off the mortgage, it will naturally owe the bank money, and the remaining debt after compensation still needs the customer to bear the corresponding repayment responsibility. If it is unable to repay, the bank will even apply to the court for enforcement, seal up other assets under its name, and then auction again to pay off the remaining debts.
Moreover, we also need to note that after the house is repossessed, if the customer can pay off the debt before the court auction, there is actually a chance to get the house back. I suggest you develop a good habit of paying back on time and try to avoid overdue; When applying for a mortgage, you should choose the appropriate loan term according to your repayment ability, otherwise the loan is too short and the monthly payment is too high.
Will the down payment be refunded if the mortgage is not paid?
Faced with the situation that the mortgage can't be repaid, the customer can't refuse to repay. There is no such thing as checking out or refunding the down payment. If the customer has been in arrears, he may be sued by the bank at that time. If the court decides not to repay the loan, the court can enforce it, take back the house auction and use the proceeds to compensate the arrears.
If there is any money left after paying off the debt, the remaining money will be returned to the customer. And if the proceeds from the house auction are not enough to cover the arrears, then the customer still needs to bear the repayment responsibility and find ways to repay the remaining loans.