Up until recently, i had a mortgage on my house.
The mortgage owners were my parents. Since my father passed away, and there is a clause in the mortgage agreement that if one or more of the loaners passes away, the loan insurance (which was paid parallel to the mortgage payments) would cover whatever was left of the mortgage.
However, after the insurance covered the mortgage, the bank started sending me messages that i must pay the "sanction" which is imposed on customers who pay off their mortgage ahead of time.
Effective to the day the mortgage was paid out by the insurance, i still had some 11 years left to pay for it.
So the "sanction" amount is rather high.
Can the bank do this?????
An answer from someone who knows Israeli laws would be much appreciated.
