Most of the people in Israel purchases their apartment or house by taking out a mortgage.
Sometimes, the borrowers reach a point where they are unable to make their monthly mortgage payment, such as due to an illness, dismissal from the workplace, financial difficulties in their business, etc.
If after a certain time the borrower doesn’t pay, the mortgage bank, or the credit provider, would request to sell the asset in a process called, Mortgage Execution.
The collections law tries to be considerate with such people (borrowers), in order prevent them from not having a roof over their heads. This is when the collection receiver will work to try and help the borrower and his family find a reasonable replacement housing.
Before taking out a mortgage, it is recommended to consult with a collection attorney so that he will inspect the mortgage agreement, since most times the bank adds a section to the agreement where it has no obligation to find replacement housing, or that there's a time limit on finding such a place (and after that time, the asset can be sold).
Selling an apartment or a house through the mortgage execution method, is an especially sensitive area, especially if it deals with the home of the borrower.
The borrower must pay the loan within 20 days, or to declare that he intends to sell the asset on his own. The mortgage bank submits to the official collection receiver a request to execute the mortgage in case the borrower (the person who took out the loan) didn't keep up with the payments.
The collection receiver will declare the sale of the mortgaged apartment/house.
If you receive a notice, in writing or otherwise, regarding mortgage execution of your home, you should immediately turn to a collection attorney so that the attorney will put in a request to delay the decision, and help you in finding replacement housing for the borrower and his family.
It is important to mention that it is possible to submit an appeal, within 20 days, against the decision of the collection receiver regarding the sale of the home to Hashalom Court, without the need for permission to appeal. In cases of family law, the appeal will be submitted to family court within 15 days.
The issue of mortgage execution, according to the collection law, an attorney that specializes in collection law will know how to protect your interests, thus your financial situation as well, against the pressure imposed by the bank in its quest to collect the loan quickly.
There is a lot of importance in turning to our office immediately in any case where you have been contacted regarding mortgage execution, or in any case where you worry about selling your home due to a mortgage loan.