Legal analysis: Legal. It is legal for private loans to mortgage real estate, but the real estate mortgage is subject to mortgage registration with the real estate management department. If there is no housing mortgage, then the mortgage has no legal effect. Even if the other party defaults and cannot repay the loan, the mortgagee cannot directly transfer the property.

Legal basis: Article 416 of the "People's Republic of China and Civil Code". The main claim guaranteed by a chattel mortgage is the price of the mortgage. If the mortgage registration is completed within ten days after the delivery of the subject matter, The mortgagee has priority in being paid over other security holders of the mortgage buyer, except lien holders.