Transfer ownership by mortgage

According to the provisions of the Civil Code, both mortgage and pledge have liquidity clauses. Before the expiration of the debt performance period, it shall not be agreed that when the agent fails to perform the due debt, the subject matter shall belong to the mortgagee or pledgee. But when mortgage or pledge is realized, the ownership of the subject matter can be transferred.

Mortgage does not transfer ownership. Mortgage means that the debtor or the third party does not transfer the possession of a certain 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 it according to law or give priority to compensation with the price of auction or sale of the property. Mortgage is based on something specific and is a form of debt guarantee.

Can't transfer. Real estate mortgage means that the property owner takes the deed of house as the mortgage and obtains the loan to pay interest on schedule. The property right of the house is still managed by the property owner himself, and the creditor only takes interest on schedule and has no right to manage the house. After the loan is paid off, the property owner will terminate the mortgage of the deed. When the debtor fails to perform the debt, the creditor has the right to dispose of the mortgaged house according to law, and has the right to receive priority compensation for the proceeds from the disposal of the mortgaged house.

What if you don't pay back the money after mortgage?

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

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

(3) Where the collateral is discounted or sold, the market price shall be referred to.

Remarks: To sum up, mortgage will not transfer ownership. Mortgage is based on something specific and is a form of debt guarantee. It is suggested that when you mortgage, you should auction it by legal means.

Legal basis: Article 410 of the General Principles of the Civil Law of People's Republic of China (PRC) * * * If the debtor fails to perform the due debt or realize the mortgage right according to the agreement of the parties, the mortgagee may agree with the mortgagor to discount the collateral or give priority to compensation with the price of auction or sale of the collateral. 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.