The dream of the apartment is still here: this is how bankruptcies will get a mortgage

The law states that 3 years after bankruptcy the debtor's financial data should be deleted and he should be a new person financially. In practice the information is kept by the banks. Are the debtor's chances of getting a mortgage zero? According to mortgage adviser Martin Boxdorf - not necessarily

The dream of the apartment is still here: this is how bankruptcies will get a mortgage

During life comes a moment when we want to buy a new apartment. But is it possible to get help from the bank to do this with our bankruptcy in the past, or is it a hopeless attempt?

Martin Boxdorf Mortgage Advisor explains that even someone who has gone bankrupt in the past is not barred from getting a mortgage. He explains that according to the new law passed by the Bank of Israel on the subject of bankruptcies, all the negative data that was previously required to be deleted should be erased and every person should be as if born again. However Boxdorf says that in practice it works a little differently because like the whole body the banks want to keep as much information as possible about their customers and therefore the information is not deleted.

Boxdorf emphasizes that despite keeping the information the banks are supposed to look at the economic conduct of the mortgage applicant as it is today. The banks want to see that the mortgage applicant meets the basic criteria - is financially managed within the framework, without checks or standing orders that are returned, has a tidy job or runs a tidy business, etc.

The bank refuses to give a mortgage? This is not the end of the story

Like any person applying for a mortgage, ex-bankruptcies are also required to bring with them equity at a certain amount. Boxdorf says banks are afraid of customers who have judged the habit and fear their economic conduct in the past. He said there could be a situation where someone comes to apply for a mortgage 8 years after bankruptcy while he is already leading a completely different life, but the banks will still make trouble for him.

Is it necessary to use consulting services? Boxdorf says anyone trying to get a mortgage in such a situation on their own will soon turn to a consultant. He says that the issue of mortgages for bankruptcies in the past is small and niche, but requires very specific expertise in order to ensure that the bank agrees to grant the mortgage.

Martin Boxdorf - "Happy Mortgage"

Phone: 053-9382060

Article courtesy of Zap Legal

The information presented in the article does not constitute legal advice or a substitute for it and does not constitute a recommendation for taking proceedings or avoiding proceedings. Anyone who relies on the information in the article does so at his own risk