Beginning Sunday, mortgage debtors will no longer need to fear the prospect of expulsion from their homes with nowhere to go. A new law, which takes effect Sunday, protects homeowners from homelessness no matter what their financial situation.
Approximately 2,000 families are evicted from their homes in Israel every year for failing to meet their mortgage payments - including those who have no other housing. Under the new law, banks will be permitted to evict tenants only after they have found an alternative living space.
The legal process to protect families from homelessness began last February, when Knesset Members met with representatives of various social organizations to discuss the issue. Representatives of social groups claimed that citizens have the right to housing, even if they have defaulted, under the 1992 Basic Law: Human Dignity and Liberty.
In addition, the social representatives argued that allowing entire families to become homeless stood in opposition to the State's obligation to ensure that all citizens are provided with their basic needs.
Representatives of Israel's banks claimed that requiring banks to wait on enforcement of mortgage debts until alternative housing was found would have a negative impact on the national economy. However, the representatives did not provide data to support their concern, leading to criticism from the MKs.
Following the debate, MKs moved to change the Writ of Execution Law to require banks to ensure that tenants have alternative housing prior to eviction. If a tenant has nowhere to go, banks can be required to pay for alternative housing for up to 18 months.
The change in the law also prohibits banks from requiring mortgage holders to give up their right to alternative housing. Until now banks have been able to add a clause to the mortgage agreement stipulating that buyers agree that if they cannot make the payments, the bank need not ensure that they have housing before kicking them out.