Thursday, April 25, 2013

Purchasing a mortgage


If a Jew takes out a mortgage pledging to pay interest to a non-Jewish lender, and the terms of the loan prohibit the Jew from paying off his mortgage early, then a Jew may purchase the mortgage from the original lender. Because of the inability to pay early, the non-Jewish lender acquired the interest from the date of origination of the loan.

However, where the original lender was Jewish then another Jew may not purchase the mortgage from him, because the Jewish lender did not acquire this illegal interest from the start.

(Rav Moshe Feinstein, Igrot Moshe Yoreh Deah 1:79)

Have a great day,

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