The Protection Of Housing Financial Consumer During The Mortgage House Judicial Auction In China

Housing right as a basic human right plays an important role in people's survival and development,obtaining and protecting housing right is essential to the maintenance of daily life and social stability.With the current housing prices continue rising,through mortgage loan to buy individual house has become the first choice of many residents,housing mortgage loan solves the problem of residents' immediate funds constraints,it is possible for the residents to get housing right.But there is a big hidden danger in the way of residents maintaining the stability of housing right,the greatest risk that the buyers are facing is the judicial auction which the bank put forwards,it means residents have to bear huge loss.Borrower's malicious breach of contract is one of the reasons that cause this phenomenon,but there are some non-subjective vicious factors,and the protection of the latter's housing right is the scope of this article.Housing mortgage loan borrowers as financial consumer,their interests are vulnerable to be infringed in the game with the professional financial institutions because of their inferior position and asymmetric information.In addition,the mortgage repayment also contains a variety of unstable factors because of its own long repayment period,borrowers in the contract can not predict the changes of their economic situation in the future,some unexpected conditions such as serious disease may also lead a breach of contract.When the borrower constitutes a default due to the non-subjective reasons and the consultation with the bank failed,the bank will put the mortgage house into judicial auction procedure in order to reduce their own bad assets,the buyer eventually lose the ownership of the house.At present,the protection mechanism of China's housing finance consumer is still imperfect,which makes non-malignant default borrower's housing right can not be protected in an effective way.At the legislative level,China doesn't have an independent financial consumer protection law which could protect financial consumers,including the housing financial consumers.The relevant laws that can be cited now are not targeted,and the relevant departmental rules' social awareness is not high because of their lower legal hierarchy,it means a comprehensive and effective legal protection system of housing financial consumers has to be established;In the resolution mechanism of mortgage housing dispute,China's several existing financial consumer protection agencies don't achieve big effect in the settlement of disputes because of their low cognition degree and executive power,and arbitration and litigation in the settlement of housing financial disputes still have many problems;In the terms of rescue system,China is short of relevant policy assistance plan,housing insurance system is not perfect yet;In the link of the mortgage auction,there are also problems such as low disclosure and the distortion of the value of the mortgage property.These factors result in non-comprehensive and non-effective maintenance of housing financial consumers' legitimate rights.In order to better protect the interests of China's housing financial consumers and maintain the stability of the residents' housing rights,we should improve the protection measures of China's housing finance consumers in the light of the existing problems in China.First of all,the concept of people's livelihood should be carried out during the whole process of China's financial consumer independent protection legislation;Secondly,China's housing finance regulatory model and dispute resolution mechanism has to be reformed,such as set up an independent financial consumer protection agency and improve the resolution mechanism of mortgage housing consumption dispute;Thirdly,improve the housing financial consumer assistance system,make protection policy in line with China's national conditions and improve the mortgage housing security system and insurance system;Finally,the reform process of the judicial auction model in our country should be promoted,ensure the public transparency of judicial auction environment,then improve the credibility of judicial auction.The purpose of this paper is to study the problems mentioned above and put forward the corresponding improvement methods,in order to make our housing finance consumers to be protected effectively,then avoid the emergence of foreclosure crisis which occurred in US.