The increase in interest rates by the Bank of Israel has a wide-ranging effect on the entire economy, and it is clear to everyone that we are at the beginning of a new era, in which many borrowers, especially mortgage loans, will be forced to repay monthly amounts that are hundreds of shekels higher than those they have repaid to date and may find themselves in a cash flow crisis and unable to repay the The mortgage loan as a series.
Realizing a residence is a drastic and extreme procedure which means taking the family's main property.
This is even more difficult when there are minor children living in the house, for whom it is not only a property, but the embodiment of family and stability.
Since it is about such property, both the legislator and the courts have made it clear that this must be done with great care and responsibility.
You were unable to meet the repayment of the mortgage loan and the bank took foreclosure procedures, what are the common claims against the foreclosure of the property?
The procedures that preceded the opening of the enforcement case
- it must be examined that the bank acted properly and sent warning letters on time.
The bank must notify the non-compliance with the mortgage payment and allow the borrower to settle the payment.
Certainly when he intends to act by legal means.
Examining the amount of the debt in arrears
- it is necessary to make sure that 6 consecutive payments have not been paid and that the amount for which the mortgage file has been opened is accurate. Only in the event that six consecutive mortgage payments are not paid, the bank will be able to open a file in execution for the realization of the property.
Violation of the disclosure obligation on the part of the bank -
banks are subject to extensive disclosure obligations and the violation of these obligations entails a violation of the validity of the signed agreement.
The bank's duty is to provide the customer with significant information, out of a perception of the power differences between them that result from information gaps.
The conduct of the receiver
- if, God forbid, an enforcement case has already been opened and a receiver appointed, it is necessary to carefully examine whether the receiver acted in accordance with the law and practice, i.e. he acted to send notices, to register the aforementioned in the tabu, to obtain relevant up-to-date appraisals and present them to the owners of the property, to publish the date of the valuation and to hold fair and proper auctions, Did he maintain the property during the entire relevant period.
The sale of the property
- even when, God forbid, the property is sold, it must be checked whether the price received corresponds to the appraisals and the proper price.
Precisely in view of the seriousness of the procedure, the enforcement registrar will be extremely careful about all of the aforementioned and will not hesitate to delay the realization of the property until the receiver's obligation is completed.
Temporary housing
- the banks usually make the borrowers sign a waiver for temporary housing, meaning that if the property is sold, the bank will not have to provide a place to live for the borrowers.
It is very important to examine whether the borrower received the proper explanation that if he does not pay the loan and the bank sells the property as part of receivership, the borrower will not be entitled to this important right.
In mortgage agreements from the recent period, the issue of transitory housing is already regulated, and it must be ensured that the rights in the matter are preserved.
The sale of the property at a reasonable time
- sometimes and later and the bank owns an asset whose value is usually higher than the amount of the debt. When the debt continues to accrue interest, the bank does not act as expected and waits for the debt to swell. When it is proven that the bank acted lazily and procrastinated in realizing the apartment, while being aware of the fact that interest charges More and more deviations accumulate in the account, this can and will be considered as a lack of care and professionalism and as a lack of good faith.
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