Factors Influencing the Residential Land Use Right Mortgage in Yen My District, Hung Yen Province, Vietnam

Introduction

The mortgage is one of the widely used financial instruments in pre-modern Europe in which land is the most used asset as a security for debt payment because it cannot be disappeared or moved elsewhere (Briggs & Zuijderduijn, 2018). The mortgage of land is also one of the measures to limit risks and to ensure the performance of obligations in civil, economic and commercial transactions and is the basis for generating the validity of the mortgage contract. In Vietnam land mortgage is understood as mortgage of land use rights because land is owned by the entire people and is uniformly managed by the state. So far there have been many studies on various aspects of land mortgage. Fisher's research focused on the disadvantages and risks faced by lenders (Fisher, 2006). Research by Bogin & Shui aimed to build a model of rural land pricing to meet different needs, including determining land prices when taking out a mortgage (Bogin & Shui, 2020). Research by Blackburn & Vermilyea aimed at determining home prices that are beneficial to mortgage borrowers (Blackburn & Vermilyea, 2007). Cho and Megbolugbe's research focused on the ethical issue of valuing mortgages when borrowers used them as collateral (Cho & Megbolugbe, 1996).

The research of Zhimin & Jianchao focused on pointing out the limitations in the agricultural land mortgage lending policy and proposing to complete the policy in accordance with local practical conditions (Zhimin & Jianchao, 2017). Burns’ mortgage reviews have shown that restrictions on mortgage loans cause borrowers to pay higher interest rates than normal and suffer property losses when they are not eligible to repay (Burns, 2017). Li's study proposed an asset mortgage model to limit the possible shortcomings associated with mortgage loans (K. Li, 2017). Zhimin & Jianchao pointed out the impact of agricultural land mortgage rights on farm production decisions (Zhimin & Jianchao, 2017). Lee & Bostic pointed out the reasons for organizing mortgage lending decisions faster in low – middle income areas (Lee & Bostic, 2020). The other studies pointed out the factor that had impact on mortgage contracts was dealing with insolvable debts (Aikhuele & Turan, 2018; Bello, 2017).