Letter of Intent

Many times we want to close a mortgage before its official end date according to the payment schedule. This can happen, for example, because we received or saved a sum of money that allows us to close the mortgage, or because we decided to sell the apartment before the mortgage ended. When we purchase an apartment that has a mortgage on it, we will need to close the sellers' mortgage.

Why should we actually close the mortgage for sellers? After all, they receive money from us, and they can use that money to close the mortgage themselves. In fact, our responsibility as buyers to take care of the sellers' mortgage ourselves is intended to Protect us. Assuming we are purchasing an apartment valued at 2 million shekels, which still has a mortgage of 500,000 shekels on it. We cannot receive the apartment until the mortgage is removed. We do not want to be in a situation where we have paid one and a half million shekels, the sellers have used this money for something other than closing the mortgage and disappeared, and now we have an apartment we cannot receive because it is mortgaged to the bank, and on the other hand, we have already paid a substantial amount. To prevent this situation, we, as buyers, will demand that our money go directly to the mortgage, and first the mortgage will be closed and the bank will remove its lien from the apartment, or in legal terms, the bank will no longer have rights to the apartment.

The question is being asked, how much money Exactly Do you need to transfer money to the mortgage bank to finalize the mortgage? The debt is calculated daily with accumulated interest, indexation, fees, etc. To know exactly how much money is needed to close the mortgage and where to transfer the money, this was created. Letter of Intent. The letter actually indicates that the bank intends to remove the mortgage on the apartment and will do so if it receives amount X in account Y. The letter looks like this:

This means that if exactly 827,800 shekels are transferred to account number… (redacted for privacy), the bank will act to remove its lien from the apartment. In the private case mentioned above, the mortgage will not be closed, but the money will be transferred to a deposit on its way to the mortgage of another apartment that the mortgage holders are purchasing, but regarding a mortgage deferral at another time.