In Israel, a lender cannot ask the Execution Office to enforce a mortgage on a home that an individual lives in until 6 months have passed since the first missed instalment, and when it does, the request must start with the arrears only, not the whole loan. That protection falls away in a few cases: when the unpaid instalments plus default interest come to more than 10% of the full outstanding balance, when you own another home you could live in, when you have left Israel for a long time without paying, when a receiver has been appointed or insolvency proceedings have opened, or when the Registrar finds you defrauded, or meant to defraud, your creditors. If you clear the arrears and the added costs in time, the bank cannot take the whole loan out of a sale of your home. This guide sets out each rule and deadline from section 81B1 of the Execution Law, 5727-1967 and the sale rules in the Execution Regulations, as the law text read when we checked it on 29 October 2026.
The Execution Office (הוצאה לפועל, Hotza’a LaPoal) is the state enforcement system run by the Enforcement and Collection Authority. Decisions in a file are made by the Registrar (רשם ההוצאה לפועל). If you are still choosing a loan rather than struggling with one, start with our guide to Israeli mortgages in English.
Identify the enforcement route before using a deadline. The home-attachment and forced-sale guide distinguishes ordinary debt attachment, temporary court orders, residential mortgages, non-residential land and insolvency.
Which homes and loans the protection covers
Section 81B1 applies to a registered mortgage on a residential apartment that serves as the home of an individual, and to a pledge (משכון, mashkon) on rights in such an apartment, which is how many homes that are not yet registered in the Land Registry are secured. “Individual” means anyone who is not a company or other corporation. The section talks about the loan the mortgage secures, without limiting it to a loan that bought the home, so a home mortgaged to secure a business loan or a relative’s debt is covered as well.
The clock depends on how the loan is repaid:
- Monthly instalments. The 6 months run from the first instalment you did not pay, and the bank can file only if that instalment is still unpaid when they end. Any payment you make during that time is credited first to the earliest unpaid instalment.
- One repayment date. If the loan agreement does not split the debt into instalments, the 6 months run from the date the whole debt was due, and the bank can file only if it was not repaid in full by then. Because the whole loan was due on that date, the request can be for the whole amount.
If you pay what you owe before the period ends, the bank has nothing it can file for under this section.
What “arrears first” really means
For an instalment loan the law requires the bank’s request to be filed first for the arrears (החוב שבפיגור, ha-chov she-be-pigur): the instalments that were not paid on their due dates. The request must also state the full loan balance. Arrears do not include amounts that fall due only because the bank called in the whole loan early, so an acceleration notice from the bank does not turn the whole balance into arrears.
The warning you receive must tell you that if you do not pay the arrears in the way the law allows, the bank will be entitled to repay the whole loan from the proceeds of selling the home. So the arrears-first rule is a window, not a permanent cap. You can stop the process by paying the arrears plus the fees, lawyer’s fees, expenses, interest and linkage added to them (the law calls these the additions) at any time until 90 days after a receiver is appointed for the home. If you do not, the bank may take the full balance from the sale.
Two worked examples of the arrears-only rule
| Example | Loan and repayments | What is unpaid | Share of the full balance | What the bank can do |
|---|---|---|---|---|
| A: one missed instalment | ILS 50,000 loan, ILS 1,000 on the 1st of each month; 12 payments made, the 13th missed, ILS 38,000 still owed | ILS 1,000 is still unpaid six months later | About 2.6%, under the threshold | File for the ILS 1,000 arrears only, stating the ILS 38,000 balance. If you pay the arrears and additions in time, the process stops; if not, the bank may recover the ILS 38,000 from a sale. |
| B: late in the loan | ILS 100,000 loan, ILS 1,000 a month; ILS 18,000 left when payments stop | Two missed instalments, ILS 2,000 plus default interest | Over 11%, above the threshold | Ask at once to enforce the whole ILS 18,000, without waiting six months. |
Our illustrations of section 81B1(b) and (c) of the Execution Law, 5727-1967, based on the examples Kol Zchut uses; legal text checked 29 Oct 2026. Interest, linkage and fees are left out to keep the arithmetic clear.
When the bank can skip the six months and enforce the whole loan
Section 81B1(c) lets the bank ask for immediate enforcement of the full loan balance, with no six-month wait and no arrears-first stage, in any of these cases:
- Arrears above the threshold. For an instalment loan, the unpaid instalments plus default interest exceed 10% of the full outstanding loan balance.
- Another home. You own, alone or jointly with a family member who lives with you, another apartment that can be used as a home.
- Leaving Israel. The Registrar is persuaded, on evidence, that you have left or are about to leave Israel for a long period without paying. The law presumes a long absence if you have been abroad for more than 3 months and have not paid the instalments due.
- Fraud. The Registrar is persuaded that you defrauded, or intend to defraud, your creditors.
- Receivership or insolvency. A receiver was appointed for the home, a receivership order covers all your assets in another proceeding, or an order opening proceedings under the Insolvency and Economic Rehabilitation Law was made against you.
The threshold test is where many borrowers get caught late in a loan. The smaller the remaining balance, the fewer missed payments it takes to cross it:
| Outstanding balance | Monthly instalment | Threshold amount | Missed instalments to pass it |
|---|---|---|---|
| ILS 1,200,000 | ILS 6,000 | ILS 120,000 | 21 |
| ILS 400,000 | ILS 5,000 | ILS 40,000 | 9 |
| ILS 100,000 | ILS 4,000 | ILS 10,000 | 3 |
| ILS 18,000 | ILS 1,000 | ILS 1,800 | 2 |
Our arithmetic on the test in section 81B1(c)(3) of the Execution Law; it ignores default interest, which the law adds to the arrears and which brings the threshold closer. Checked 29 Oct 2026.
On a young mortgage the six-month protection usually holds. On a loan with only a few years left, three months of missed payments can be enough to let the bank go for everything, so talk to the bank early.
A freeze request is not an enforcement stay. The mortgage-payment deferral guide separates ordinary bank approval, dated emergency schemes and the evidence that a payment arrangement has actually taken effect.
What to do when the warning arrives
The bank’s request must include the mortgage deed, a Land Registry extract (nesach tabu) and an affidavit verifying the debt broken down into principal, interest and expenses. A bank enforcing a housing loan must also state in an affidavit that it acted under section 5A(e) of the Housing Loans Law, 5752-1992, and attach a copy of one of its notices to the borrower under that section.
Once the bank files, the Execution Office serves you a warning (אזהרה, azhara) with the details of the mortgage deed. Under the Execution Regulations it says that if you do not pay what you owe within 20 days of service, or a shorter period the Registrar sets for special reasons, steps to sell the mortgaged property will follow. Enforcement normally starts only after that period, unless the Registrar decides the circumstances justify acting sooner.
| Option | When it fits | Deadline | What happens |
|---|---|---|---|
| Pay the arrears | You can cover the missed instalments and costs | Within the warning period if possible; the law allows payment until 90 days after a receiver is appointed | The Registrar stays the mortgage proceedings once the arrears and additions are paid |
| Ask for a payment order (צו תשלומים, tzav tashlumim) | You accept the debt but cannot pay it at once | 20 days from service of the warning, or another date set in it | You propose instalments with a reasoned statement of your finances and documents; the Registrar decides |
| Claim you already paid (טענת פרעתי, ta’anat parati) | You paid some or all of the amount claimed | As soon as possible | You must prove the payment; the Registrar may delay enforcement until deciding, for special reasons, usually against security |
| Notify that you will sell the home yourself | Selling yourself would repay the whole loan | 20 days from service of the warning | A stay of the mortgage proceedings for 90 days (see the next section) |
| Get a lawyer or Legal Aid | You have no representation | Before the Registrar decides on the sale | The Registrar can suspend the sale decision so you can be represented |
Source: Execution Law sections 7, 7A, 19, 38 and 81B1 and Execution Regulation 100, checked 29 Oct 2026.
If the bank filed before the six months ran out, or asked for the whole loan when none of the exceptions applies, the request does not meet section 81B1. Raise it with the Registrar quickly, preferably through a lawyer.
Selling the home yourself
Within 20 days of service of the warning you can tell the Registrar that you want to sell the home yourself to repay the whole loan. The Registrar must then stay the mortgage proceedings for 90 days from receiving your notice, on condition that you secure repayment of the full loan from the sale price as the Registrar directs. The home may be sold under this route only after the Registrar approves the sale.
A sale you run yourself keeps the price and timing in your hands and avoids a receiver’s fees, which the law adds to the enforcement expenses you pay. The notice deadline is short, so get your paperwork ready early with our seller document checklist.
When a receiver is appointed
The Registrar may appoint a receiver (כונס נכסים, kones nechasim) for the home when that is needed or useful to enforce the debt. The receiver takes charge of the property and manages and sells it as the Registrar directs. Appointing a receiver for the home is itself one of the grounds that let the bank ask to enforce the full loan at once.
From the appointment you have 90 days to do one of two things:
- Pay the arrears in full, together with the fees, lawyer’s fees, expenses, interest and linkage added up to the day you pay.
- Pay half of the arrears and additions, provided you show the Registrar, to the Registrar’s satisfaction, that the rest of the arrears and additions will be paid 6 months after that payment.
Once the arrears and additions are paid in this way, the Registrar stays the mortgage proceedings, on the Registrar’s own initiative or at your request. If they are not paid, the bank is entitled to repay the whole loan from the sale. The file is closed 12 months after the day the arrears and additions were paid, and the Registrar may close it at your request once 3 months have passed.
This right covers the arrears and additions, not the whole loan balance. Section 81B1 defines the full loan debt separately and gives the right to pay after a receiver is appointed for the arrears and additions only.
What stops a sale and what does not
- Stays the Registrar must order. A timely notice that you will sell the home yourself, if you secure repayment as directed, and payment of the arrears and additions after a receiver is appointed, as described above.
- Challenges and appeals. Under section 80(c) of the Execution Law, a challenge or appeal under that section, or a request for permission to appeal, does not by itself delay an enforcement step. The Registrar or court may order a stay, sometimes subject to security. Other statutory stays can apply in particular circumstances. Check your case and any order immediately with a lawyer.
- A “paid” claim. The Registrar may delay enforcement while deciding it, for special reasons that are recorded, and will normally require security.
- Suspending a single step. You can ask the Registrar to suspend a particular step or not to take it; the Registrar may agree if you give security, or waive security to prevent an injustice.
So if a sale date is close, file a specific request to stay or suspend it as well as your argument, not the argument alone.
Alternative housing (סידור חלוף) and the clause in your mortgage deed
Section 38 of the Execution Law protects the family home. The Registrar may not order the sale of a home you live in and the eviction of you and the family members who live with you unless it is shown, to the Registrar’s satisfaction, that you will have a reasonable place to live, that you can afford one, or that an alternative arrangement (sidur chalof) has been provided, such as another apartment, a payment or another method. This applies to enforcing a mortgage or pledge too. The value of the arrangement is treated as an enforcement expense, which the law charges to the borrower and adds to the debt in the file.
Mortgage deeds often contain a clause that changes this. If the deed or pledge agreement states that the alternative arrangement will follow section 38(c)(2) instead of the general rule, and its meaning was explained to you in clear language you understand, the arrangement is a sum that lets you rent a home in your area suited to your household’s needs for up to 18 months. The Registrar may set a longer period in special circumstances. These mortgage-deed rules in section 38(c) do not apply to property covered by tenant-protection (key money) law.
Before you sign a mortgage, read this clause and ask the bank to explain it in a language you understand. If you already have a mortgage, ask a lawyer how the clause in your deed applies, because deeds signed under older versions of the law may be worded differently.
Getting a lawyer or Legal Aid
The Registrar may order the sale of a home you live in only after both sides were invited to a hearing by an invitation served on them in full. The invitation must say that you may ask to suspend the decision on the sale and eviction so you can hire a lawyer or get representation under the Legal Aid Law, 5732-1972, if you are eligible, and it must include information about how to get a lawyer that way. If you are not represented, the Registrar may suspend the decision at your request, or on the Registrar’s own initiative if you want it.
How an Execution Office sale works
If the warning period passes without payment, the Registrar orders the sale of the mortgaged property. For a home you live in, that order comes only after the hearing above and after the alternative-housing condition is met. The sale then follows the regulations for selling attached real estate:
- Appraisal. A certified real estate appraiser (shamai) inspects and values the property. The report goes by registered mail to the bank and to you, and to the Registrar with a Land Registry extract. If you disagree, you can submit a contrary appraisal from a certified appraiser and the Registrar sets the value for the sale.
- Advertisement. At least 15 days after the report is sent, the sale is advertised in Reshumot (the official gazette), a daily newspaper, the Execution Office notice board, or any of these as the Registrar directs, with the appraised value and where to bid.
- Written bids. Buyers bid within 15 days of the advertisement, or a longer period the Registrar sets, with a deposit of at least 10% of the price offered. A mortgagee or the creditor bidding is exempt from the deposit.
- Public auction. When the bidding period ends the list closes and the bidders are invited to an auction. To compete, each must top up the deposit to 10% of the highest bid received. The Registrar makes the final decision on the buyer.
- Payment and transfer. The declared buyer pays the balance within 7 days of being asked; if not, the deposit is forfeited and the next bidder can be declared. The buyer receives the Registrar’s signed confirmation, which is the basis for registering the property in their name. The bank is paid out of the proceeds only after it files an up-to-date Land Registry extract.
If no bid arrives on time, only low bids arrive, or the Registrar sees no reasonable prospect of collecting another way, the Registrar may instead order possession of the property handed over, or a lease or mortgage registered on it, on terms the Registrar sets, to repay all or part of the debt.
Appeals
- A decision to sell your home and evict you (under section 38(a)) can be appealed to the Magistrates’ Court as of right, without asking permission.
- Most other decisions of the Registrar, including a refusal to stay proceedings, can be appealed only with leave from a Magistrates’ Court judge.
- Actions or decisions of the office manager or staff are challenged first by an objection (arar) to the Registrar.
None of these stops the file automatically; see what stops a sale above.
Timeline at a glance
| Stage | Time limit | Who acts |
|---|---|---|
| First instalment missed | Clock starts | You; pay or talk to the bank |
| Earliest enforcement request (unless an exception applies) | 6 months after the missed instalment | The bank, for the arrears first |
| Warning served | 20 days to pay, unless the Registrar shortened it | You |
| Payment order request | 20 days from service | You |
| Notice of a self-sale | 20 days from service; stay of 90 days | You, then the Registrar approves the sale |
| Receiver appointed | 90 days to pay the arrears, or half now and the rest 6 months later | You |
| Advertisement of the sale | At least 15 days after the appraisal report is sent | Execution Office |
| Written bids | 15 days from the advertisement, deposit at least 10% | Buyers |
| Balance from the winning bidder | 7 days from the demand | Buyer |
| File closed after the arrears are paid | 12 months, or after 3 months at your request | Registrar |
Source: Execution Law, 5727-1967, sections 7A, 38, 81B1, and Execution Regulations, 5740-1979, regulations 66 to 68 and 100, checked 29 Oct 2026.
Where to get help
- Your bank, before the six months end. Act quickly. The cheapest time to fix arrears is before any file is opened, either by paying them or by agreeing a new arrangement with the bank. Our guide to refinancing an Israeli mortgage explains how a restructure or a new loan is costed, and the Israeli mortgage FAQ covers the vocabulary banks will use.
- The Enforcement and Collection Authority. Borrowers and creditors can view an Execution Office file, file requests and follow updates through the personal area on the Authority’s website (in Hebrew).
- Legal Aid. If you face a hearing on the sale of your home and have no lawyer, ask the Registrar for time to get representation and check your eligibility with the Ministry of Justice Legal Aid Administration.
- A licensed lawyer. The timing rules above are strict, and a lawyer can check whether the bank’s request, the arrears figure and any alternative-housing clause in your deed meet the law.
This is general information, not legal or tax advice; confirm with a licensed professional.
Sources
- Execution Law, 5727-1967, consolidated Hebrew text: sections 7, 7A, 16, 19, 37, 38, 53, 54, 80, 81 and 81B1, read 29 October 2026.
- Execution Regulations, 5740-1979, consolidated Hebrew text: regulations 64 to 69 (sale of real estate), 99 to 101 (mortgage enforcement) and 115, read 29 October 2026.
- Legal Aid Law, 5732-1972, consolidated Hebrew text.
- Enforcement and Collection Authority, gov.il (Hebrew).
Falling behind but no file opened yet? An English-speaking mortgage professional can look at refinancing or restructuring with you before the deadlines start to bite. Ask for an introduction to a mortgage professional; you see who they are before you agree, and we tell you in writing whether we receive a referral fee.
