Gaza Mortgages - what happens?

August 19, 2005 8:55 AM

What happens to the mortgages on Israeli West Bank Settlers homes when the settlers are withdrawn?

I've seen reference on various sites that the mortgages were government-backed, does this mean that the government is accepting the default for the settlers? Were all the mortgages government-backed? What about people who paid off their homes? What about the settlers who refuse to leave or at first refuse to leave, but are then forced out?

Most of the coverage is about the resistance to and problems with the pullout, but I don't find much about this question. Thanks.

DailyKOS states "However, many less radical settlers would also like to 'cash out' of their entrapping West Bank mortgages". This implies that they are not being bought out of the mortgages, is this correct?

posted by Invoke to law & government (4 comments total)

The resettled families are being given compensation, sometimes up to £500,000, which should both pay off any existing mortgage and allow to purchase a new home. Don't know about those who refused to move.
posted by bonaldi at 9:03 AM on August 19, 2005

According to one news report I found they will forfeit some, but apparently not all settlement money the would have received if they didn't leave before the 48 hour deadline.
posted by m@ at 9:31 AM on August 19, 2005

I read the other day that the compensation was being paid by the U.S. govt. (Indirectly of course).
I know that it sounds far fetched, and conspiracy theory-ish, but the source was a local newspaperpaper. I have not done any further research, might be worth looking into.
posted by TheFeatheredMullet at 2:48 PM on August 19, 2005

Feathered Mullet, it doesn't sound far-fetched at all when you consider the amount of military and other aid that the US provides to Israel.
posted by randomstriker at 4:26 PM on August 19, 2005