You borrow 500,000, and on that day your house price plummets at a unit price * area is not worth 500,000. The bank has the right to ask you to make up the loan at the first time, otherwise the house will be auctioned, and after the auction, you still owe the bank a loan. And all the operations are legal and compliant.
For example, with a loan of 500,000 yuan, house prices fell sharply one day. It is only worth 300,000 at the market price.
Good!! The bank will ask you to pay 200,000 yuan.
If you can't come up with 200,000, the bank has the right to auction your house.
Suppose the auction is only 250,000.
That's right, the house is no longer yours, and you owe the bank 250,000.
Yes, all operations are legal and compliant. There was no problem.
At this time, you still dare to say that the sharp decline in house prices is a good thing???
The best thing is that there is no private mortgage class in our country to have this operation, and this is really thanks to the country.
Between business companies, such operations are frequent.