An Analysis of Disposal of Housing After Early Termination Subscribers of Reverse Mortgage

The purpose of this study is to empirically analyze the determinants of housing disposition among the elderly who did not re-enroll in the reverse mortgage after early termination. In addition, it analyzes the determinants of how long it takes to sell the house. Through the two empirical analyses, we examine the reasons for housing disposition and the factors that affect the time it takes to sell the house. The disposition of mortgaged houses is categorized into gift and sale, and the probability of gift or sale compared to retention is estimated using a multinomial logit model. In addition, the determinants of the time to sell were estimated using an ordered logit model. The results of the empirical analysis confirm that various factors affect the decision to give or sell a house and the shortening and increasing of the time period. The significance of this study is that it is an early-stage study that empirically analyzes how the last asset of the elderly, housing, accumulated over the life cycle, is utilized after the reverse mortgage is terminated.