The Research Of The Legal System Of The Reverse Mortgage In China

The reverse mortgage is a financial plan for the retired people in which the lenders loan money to the house providers, in this case, the retired people, for a certain period of time after which the house goes back to the owner when he or she pays off the mortgage. This mortgage can effectively use the house property owned by the retired people and at the same time improve the living standards of the senior citizens. It will reduce the pressure on family, nation and stimulate consumption and spur the economic development. The increase of the second hand real estate can also save some resources and has great significance to the social development.A number of research methods are adopted within this paper such as theoretical analysis. The method of logical reasoning, induction and deduction are used to analyze the basic theory of reverse mortgage. Comparative analysis is used to compare the domestic situation with the international one. The forms can effectively show the low cover rate of pension throughout China which leads to the conclusion of the need to solve the current problem by the reverse mortgage. This paper also uses the economic analysis method to analyze the pros and cons of the reverse mortgage loan system and the risks to be expected. Based on the data and actuarial methods, the paper analyzes the system that conforms the condition in China by the annual mortgage loan and the expected value of the houses.Reverse mortgage system is very important for improving the living standard of senior citizens and reducing the social burden, promoting financial development and maintaining the stability of the real estate market. In this way, this research has significant meaning to solve the above problems.There are three innovations in this paper:first, the principle to make the laws has been provided. The method to analyze the system based on the legislation has been rarely seen in China; second, the detailed rights and obligations have been provided so that the reverse mortgage can be applied to one's real life; third, the paper has given suggestions on how to build up the system which conforms to the national condition. The unique construction model is the main innovation and point in this paper.