As I have previously written, we must remember that – side by side with criticism – Israeli society has plenty of positive aspects as well. One of the most amazing characteristics of Israeli society is that there is the possibility of a kind of true and deep friendship we can hardly find anywhere else in the world.
This was the case of the Cohen Family (not the real name, of course). The Cohens were a new immigrant family of six who made Aliyah – leaving behind friends and family to become Israelis.
After a few years in Israel, Mr. Cohen was doing well as a self-employed insurance agent, making a good income. Because of their good financial situation, the family decided to build a house in the “Yishuv” in which they were living, in the Binyamin area. They had lived in a “caravan” for too long and it was now time to have their own dwelling – a real property in Israel.
They hired an architect and planned a relatively small and inexpensive house that they thought they could afford. In order to build the house, the family took a very large mortgage for 70% of the total value of what they thought would be the final price of the house.
They were meticulous and very careful not to go above the planned budget. But as they’ve learned, the distance between a good plan and reality can be very big.
When they reached the last stage of building, after installing faucets, sanitation, sinks, etc., all the money was already gone. They had a complete lack of understanding about the process of building a house; therefore, their financial plan was all wrong. For example, they were surprised by expenses such as payment for an expert due to some engineering problems, and when prices for iron and cement went up 25% unexpectedly during the process. No one told them about costs regarding hooking up the house to the electric company (Tofes 4), gas, etc.
They were now two years into the process of building the house and could not finish. They were in debt for everything – including the architect, suppliers, banks and their mortgage. They were broke and didn’t have a house. And the bank, after six months of non-payment, had started a legal process to sell the house.
The Cohens had four kids, they loved Israel and they made a good income together, but they now could not make ends meet. It was too much pressure, inflation and interest. The debts were soaring.
There was no other way but to file for bankruptcy – and they proceeded. Lawyers cost them a very large sum, which they received as a Gemach. During the hearings, an agreement was reached between the mortgage bank and Cohens’ lawyers. As a result of this agreement, the house was sold for 75% of its value, which made the Cohens very happy.
Why, you are asking?
The entire community of the Yishuv took the Cohens on as a personal “project”. One of the neighbors bought the house by raising the entire sum – contributed to equally by every family in the Yishuv. All together as a group, they approached another bank, taking a new loan for the entire price of the house. The group bought the house, the mortgage was paid off and the case was closed.
The loan was not only to deal with the mortgage, but also to finish the house and make it possible to move into. The monthly installments were reasonable and affordable and, after three years, the Cohens were exempt of all debts – as happens in a bankruptcy case.
The Cohens moved in, paid “rent” to the group and in 25 years they will be the owners of that property.
The details of such a complicated plan and legal process are very hard to explain and to understand, but it is, in fact, a doable process. Of course, life was hard for the Cohens and they lost every cent of more than 5 years of savings, in addition to many more years of some discomfort, but the results were fantastic for them. They gained a house and a community, they had the chance to start fresh and the children at that time didn’t really go through a big trauma.
The Cohens have learned what a real “Sabra” is – full of thorns on the outside, but sweet and tender on the inside.
