Legal analysis: houses with loans can also be auctioned according to law. Court auctions will only be held when the judiciary needs them. If judicial proceedings are not involved, the court is not an auction institution and will not accept any auction commission. If you are sued, you need the court to execute the auction. As long as it is of execution value, the court can execute the auction regardless of whether you have borrowed money or not, but the payment order of the auction money is different. The law also stipulates that the people's court may seal up the residential houses necessary for the implementation and maintenance of family members' lives, but may not auction, sell or foreclose.

Legal basis: Article 244 of the Civil Procedure Law of People's Republic of China (PRC). If the person subjected to execution fails to perform the obligations specified in the legal documents according to the notice of execution, the people's court has the right to seal up, detain, freeze, auction or sell off the property that the person subjected to execution should perform. However, the necessities of life of the person subjected to execution and his dependents shall be retained. The people's court shall make a ruling on taking the measures mentioned in the preceding paragraph.