The Knesset has passed a bill initiated by MK Yaakov Asher by which if a person with a mortgage is niftar, payments on the mortgage would be frozen for a year to permit a family to organize under the new difficult circumstances.

The chairman of the Knesset Economic Committee, MK (Labor) Eitan Cabel, praised the efforts of Asher, who is concerned with assisting bereaved families, adding the bill will be in memory of Asher’s brother who was niftar.

The bill proposes that if a person who took out a housing loan from a banking corporation or non-bank body (hereinafter – the lender), the lender will postpone the repayment dates of the loan at the request of a person who must pay it for a period of up to 12 months and not charge interest on arrears or other payment which one would not have been required to pay had it not been for arrears.

It was further determined that the accompanying body will be required to inform the debtor of his right under this amendment. The arrangement will apply to housing loan agreements signed six months after the publication of the law.

Seventeen Knesset members supported the law, there were no opponents.

“The proposal will allow the grieving family the time needed to deal with the mortgage repayment during the difficult period in which it was caught and to arrange the process of receiving the insurance or continuing the payments without fear of an economic burden in the year following the death,” said Asher.

“According to the proposal, the heirs of a person who took a mortgage and died can receive deferral of payments of up to 12 months without interest arrears, so that at this time they will be able to issue all the necessary approvals and remove the life insurance claim process for the purpose of paying the mortgage.

MK Asher said that “this is a minor but particularly important amendment to families experiencing disaster.” He explained that “after the death of a family member, he is required to deal with many problems during the mourning period, and sometimes continues to pay the mortgage taken by the deceased even if she had no other income other than that of the niftar.”

(YWN Israel Desk – Jerusalem)