If the mortgage is not repaid for over three months, the court will auction the house. After the mortgage is overdue, it will not be auctioned immediately, but will be collected first. Banks usually send letters to inform borrowers of repayment, and lending institutions also send text messages for collection. After the mortgage is overdue for more than three months, it is no longer just a reminder. At this time, the institution can sue, so the bank or lending institution is likely to bring a lawsuit to the court and ask the borrower to repay the loan as soon as possible through legal channels. During the litigation, the property will also be frozen.

Legal basis: Article 40 1 of the Civil Code of People's Republic of China (PRC).

If the mortgagee and the mortgagor agree that the mortgaged property will be owned by the creditor when the debtor fails to perform the due debt before the expiration of the debt performance period, he can only get priority compensation for the mortgaged property according to law.

Article 4 10

If the debtor fails to perform the due debt or the parties agree to realize the mortgage right, the mortgagee may agree with the mortgagor to discount the mortgaged property or give priority to compensation with the price of auction or sale of the mortgaged property. If the agreement harms the interests of other creditors, other creditors may request the people's court to cancel the agreement.

If the mortgagee and the mortgagor cannot reach an agreement on the way to realize the mortgage, the mortgagee may request the people's court to auction or sell the mortgaged property.

Where the mortgaged property is discounted or sold, it shall refer to the market price.

What are the conditions for applying for a loan?

1, with legal and valid residence status;

2. There is a contract or agreement to purchase the store;

3. Have a stable occupation and income, good credit, and the ability to repay the loan principal and interest on schedule;

4. There is a down payment of not less than 50% of the total price of the purchased store;

5. Agree to use the purchased shops as collateral or provide assets recognized by the loan bank as collateral or pledge, or units or individuals with guarantee qualifications and sufficient compensation capacity as guarantors to repay the loan principal and interest and bear joint and several liabilities.