Collateral is generally easy to preserve, wear and tear and sell, such as securities, bills, stocks, real estate and so on. After the loan expires, if the borrower fails to repay the loan on time, the bank has the right to auction the collateral and repay the loan with the proceeds from the auction. The balance of the auction money after paying off the loan shall be returned to the borrower. If the auction money is not enough to pay off the loan, the borrower will continue to pay off.
Extended data:
Individuals choose "two rights" mortgage loans;
Handling mortgage consumption business has become an inevitable choice for some consumers. Qian Lin, vice president of Chain Home Real Estate, reminds consumers that in addition to choosing ordinary mortgage consumer loans, they can also choose different special types of loan products according to their personal circumstances:
Weak monthly payment capacity: suitable for replacement mortgage.
Replaceable mortgage can extend the loan life to 30 years, which is different from the 20-year period of ordinary mortgage consumer loans. Share the pressure of monthly repayment, suitable for young people with weak monthly repayment ability.
High repayment amount: suitable for net worth loans.
Some property buyers borrowed more money temporarily to raise money to buy a house, so the repayment amount was higher. When making mortgage consumption, they need a higher amount of loans to be able to repay temporary loans. In this case, it is suitable to choose a net worth loan. The maximum loan ratio of this product can reach 80%, and the mortgaged property is required to be less than 90 square meters within five years.
Unstable monthly repayment ability: suitable for revolving loans.
Because mortgage consumer loans are often audited for the real estate itself, revolving loans are a better choice for some people with unstable monthly income and repayment ability, that is, mortgage the house to the bank, and you can get a certain loan amount, which can be withdrawn in installments and recycled during the mortgage period of the real estate. This will ensure that you have some "spare money" in your hand.
Baidu encyclopedia-mortgage loan