The Home Mortgage Loans In Online Judicial Auctions

The 19^th CPC National Congress proposed“keep the bottom line of no systemic financial risk”.Zhou Xiaochuan,the president of the People's Bank of China,pointed out that one of the main risks in China's financial sector is the credit risk of financial institutions at the micro level,mainly refers to the erosion of non-performing loans which has eroded the capital and risk resistance ability of banking system in recent years.As the scale of the home mortgage loans and the non-performing loans increased year by year,the judicial auction is an important way to recovery the non-performing loans of the bank.The online judicial auction is the latest achievement of the judicial reformation in China.With a wide range of characteristics,such as wide audience,systematized operation,convenience,social supervision,publicly bidding and more completely information,the online judicial auction avoid rent-seeking rights problems,both enhance the rate of turnout and premium,and improve the judicial efficiency and justice.With the comprehensive promotion of the online judicial auction rules by the Supreme People's Court,the online foreclosures trading are well known as the public auction and rapid transaction,coming with increasing attention,trade volume,and wide development prospects.On the other hand,the same as the ordinary home mortgage loans do,the home mortgage loans in online judicial auctions are affected with the strict re gulation of the domestic real estate market and the restriction of the differential credit policy,which has added the complexity and professionalism of the business.This paper briefly introduces the basic knowledge of the theory of auction economics and housing mortgage loans,reviews the development process of the housing mortgage loans business in China,analyzes the characteristics of the differential credit policy,and summarizes both the judicial auction system evolution in China and the historical restriction factors about the mortgage loans business on foreclosures.Through the comparative study of the new honusing and second-hand housing mortgage loans business,this paper carries out a detailed and comprehensive risk analysis on the foreclosure mortgage loans.With refernce to the American foreclosure mortgage loans,this paper sugest the improvments about the protection of the buyer's rights,the supervision on the judicial auxiliary institutions,development of the online loans pre-approval services,the real estate information disclosure system and the housing property insurances.