Israeli Group Wants 20,000 People to Stop Paying Their Mortgage

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As apartment prices rise in Israel, the banks are compounding the problem by making it harder for people to borrow large mortgages. A group named “Mortgages for Chareidim” proposes the launch of a mortgage rebellion.

If 20,000 people refuse to pay their mortgage payments of say 2,000 shekels monthly for three months, the organization argues, this would dent the banks’ profits by 120 million shekels.

The idea is not unprecedented. In 1938, Londoner Mrs. Elsy Borders stopped payments to a mortgage company house when her home turned out to be shoddy and inspired thousands of others to strike for mortgage rights.

{Matzav.com Israel News Bureau}

7 COMMENTS

  1. …and the banks will be even less likely to lend to chareidim. I think there’s an issue of biting off more that one can chew.

  2. In this case I think it’s for the benefit of the investor/buyer not to take on a loan bigger than he can handle and then end up loosing his home because he can’t keep up payments. Of course the bank could spread the same payments over a larger number of years, but there is point were te sum is so large that even this is not possible.

  3. There might be an idea in it. We purchased an apt. for $760,000 5 yrs ago. Put down around $500,000 in cash and still dont have a mortgage for every silly reason in the world. We keep on being told that a bit more cash and a bit more cash will help them. Its something americans need to take into account when considering an apt in israel. so many sales and open houses for new projects but this issue and many others are things you must consider before. Ive taken notes and it’s not that simple.

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