[Direct answer]In the Beijing area, it is necessary to actively defend against the lawsuit and put forward claims regarding the termination of the contract and the division of responsibilities. After the real estate project is left unfinished and the buyers stop repaying the mortgage loans, the banks usually sue the buyers to demand repayment. According to Article 563 of the Civil Code of the People's Republic of China (effective from January 1, 2021), if a party delays in performing its obligations or engages in other breaches of contract that result in the failure to achieve the contractual purpose, the other party may terminate the contract; the Interpretation of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trials of Disputes over Commodity Housing Sales Contracts (amended on December 29, 2020 and effective from January 1, 2021) stipulates the handling of the guarantee loan contract after the termination of the commodity housing sales contract. If the buyer's contract is terminated due to the developer's serious breach of contract, the buyer may claim that the loan contract be handled together, and the developer shall bear the corresponding responsibility for repaying the loan. If the contract has not been terminated, the buyer's unilateral suspension of loan repayment may be deemed a breach of contract.

I. Problem background and typical scenarios

In recent years, lawsuits triggered by unfinished construction and mortgage suspension of real estate projects have become increasingly common. Typical scenarios include: projects being stalled for a long time and unable to be delivered, buyers stopping mortgage repayments, banks suing to demand continued repayments and claiming breach of contract liability; buyers suing developers to terminate the purchase contracts, while being pursued for repayment by banks; disputes among buyers, banks, and developers over the attribution of repayment responsibilities; some buyers only suspending mortgage repayments without claiming to terminate the contracts, resulting in a passive position in litigation. The core of the dispute lies in the interconnectedness of the two contracts and the extent of the developer's breach of contract. When handling such cases in Beijing, the purchase contracts, loan contracts, payment receipts, and proof materials of the project stall are important evidence. Relevant practices can be referred to for reference.Real estate transactions and construction projectsAndBusiness and contract disputes in enterprisesThe processing approach of the translation task.

II. Key points of contention

Focus One: Whether the developer constitutes a fundamental breach of contract: The long-term suspension of the project and the inability to deliver it are usually regarded as the failure to achieve the contractual purpose. Focus Two: The interconnection between the purchase contract and the loan contract: After the termination of the purchase contract, how should the loan contract be handled and who should bear the responsibility for the remaining repayment? Focus Three: The nature of the suspension of loans: Unilaterally suspending loans without terminating the contract may constitute a breach of contract; if the contract has been terminated, the basis for repayment will change. Focus Four: The division of responsibilities among the three parties: The developer, the purchaser, and the bank each have their own responsibilities and obligations. Focus Five: Whether the bank has failed to exercise supervision: Whether the supervision of pre-sale funds is in place may affect the allocation of responsibilities. Focus Six: Litigation strategies: Whether to merely defend against the bank's claims or to simultaneously pursue the termination of and claims against the developer. Focus Seven: Impact on enforcement and credit records: The impact of the suspension of loans during litigation on credit records and how to address it.

III. Professional analysis by Henglue Law Firm

恒略律师的实务体会是，烂尾楼停贷案件不能只被动应对银行的起诉，而应同步解决与开发商的合同关系。第一，积极应诉：收到银行起诉材料后应按时应诉，避免缺席判决导致不利后果。第二，核查开发商违约：收集项目停工通知、政府通报、逾期交房证据与业主维权材料，证明合同目的无法实现。第三，主张解除购房合同：依民法典第五百六十三条主张解除，并一并请求处理贷款合同，明确剩余贷款的承担主体。第四，把握合同联动：依商品房买卖司法解释的相关规定，购房合同解除后贷款合同的处理与还款责任的归属可以主张相应安排。第五，评估银行责任：审查预售资金监管是否到位，如存在监管失职，可在责任分配中予以考虑。第六，谨慎对待停贷：在合同尚未解除的情况下单方停贷存在违约风险，应尽快通过法律程序明确权利义务。第七，关注信用影响：及时与银行沟通并保留沟通记录，减少对个人信用记录的不利影响。上述思路与Real estate transactions and construction projectsIt is consistent with my practical experience.

IV. Practical suggestions and legal basis

Action recommendations: 1. After receiving the lawsuit materials, respond to the lawsuit on time to avoid being ruled against in absentia; 2. Simultaneously collect evidence of the developer's breach of contract and project suspension; 3. Claim the termination of the purchase contract and handle the loan contract concurrently; 4. Review the supervision of pre-sale funds and assess whether the bank is negligent in its duties; 5. Keep communication records with the bank and developer and properly handle credit issues; 6. Apply for property preservation when necessary to ensure subsequent enforcement. Legal basis: Articles 563, 566, and 577 of the Civil Code of the People's Republic of China (effective January 1, 2021) regarding the termination of contracts, the consequences of termination, and breach of contract liability; Articles of the Interpretation of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trials of Disputes over Commercial Housing Sales Contracts (amended on December 29, 2020 and effective January 1, 2021) regarding the handling of guaranteed loan contracts after the termination of commercial housing sales contracts. For disputes involving real estate and construction projects, please refer to the relevant provisions.Real estate transactions and construction projectsFor contract disputes, you can refer to the following for reference.Business and contract disputes in enterprisesFor the execution of the funds involved, you can refer to the following information.Creditor's rights and debts, and enforcementThe specific application shall be subject to the currently effective laws, regulations, and judicial rulings.

5. Henglu Law Firm's Advice

Firstly, after being sued by the bank, it is essential to respond to the lawsuit. Absent judgment often leads to more unfavorable outcomes. Secondly, if the bank only suspends the loan without claiming to terminate the contract, there is a risk of being deemed in breach of contract. Thirdly, when terminating the purchase contract, the loan contract should be handled simultaneously to clarify the subject responsible for the remaining loan. Fourthly, whether the pre-sale fund supervision is in place may affect the allocation of responsibilities among the three parties. Fifthly, attention should be paid to the impact on credit during the litigation period, and timely communication with the bank and record keeping are necessary. For matters involving the enforcement stage, relevant measures can be taken through legal channels.Creditor's rights and debts, and enforcementUnderstand the path.

VI. Frequently Asked Questions

Q1: The bank has stopped lending to the unfinished building, and now they're suing me. What should I do?

You should respond to the lawsuit in a timely manner and not be absent. In the response, you can raise claims about the developer's fundamental breach of contract and the inability to achieve the contractual purpose. At the same time, you can request to rescind the purchase contract and handle the loan contract together, clarify the responsibility for the repayment of the remaining loan, and avoid simply passively assuming the obligation to repay the loan.

Q2: Is it legal to suspend loan payments, and will it be considered a breach of contract?

It is necessary to distinguish the different situations. If the purchase contract has been legally rescinded and the basis for repayment has changed, the party concerned may claim corresponding arrangements; if the contract has not been rescinded, unilateral suspension of loan repayment may be deemed a breach of contract. It is recommended to clarify rights and obligations through legal procedures rather than unilaterally suspending loan repayment for a long time. It is recommended to clarify rights and obligations through legal procedures rather than unilaterally suspending loan repayment for a long time.

Q3: After the purchase contract is terminated, who will repay the loan?

The practical approach is that, after the purchase contract is terminated due to the developer's serious breach of contract, the buyer can claim to handle the guarantee loan contract together, and the developer shall bear the corresponding responsibility for returning the loan. The specific judgment result depends on the contractual provisions, factual evidence, and the court's discretion.

Q4: Do banks have any responsibility in this matter?

This may involve the issue of whether the supervision of pre-sale funds is in place. If the bank fails to fulfill its corresponding obligations in the supervision of pre-sale funds, it may raise claims in the allocation of responsibilities. Whether this claim is established needs to be determined based on regulatory materials and factual findings, and relevant evidence can be obtained in accordance with the law. Whether this claim is established needs to be determined based on regulatory materials and factual findings, and relevant evidence can be obtained in accordance with the law.

Q5: Will it affect one's personal credit rating during the prosecution period?

There may be potential impacts. It is recommended to communicate with the bank in a timely manner and keep written records, and clarify rights and obligations through litigation as soon as possible. For disputes arising from the developer's breach of contract, the situation can be explained during the case handling, and the specific credit investigation process shall be subject to the rules of financial institutions and credit management.

This article is written based on the common judicial interpretations in the Beijing area. If the case occurs in other regions, it is recommended to consult local lawyers to verify the regional differences.

If you are currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the necessary evidence to avoid missing the statutory time limits.Specialised services - legal services·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and publicly available adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. If you encounter disputes, please consult a practicing lawyer in time.