So they DID have the plan to settle in Canada long-term? I'm not sure how they or your fiance thought that would happen. Were there any plans to sponsor them for PR?Honestly, I have no idea what made them think to sell everything. Now it's just more burden on my fiancée for not researching this before they came. The plan if Canada didn't work out was to come back to Israel and stay at friends houses until their subsidized housing was ready. ( So it was a little thought out i guess ) But now, due to covid, they cant stay with friends. And now because of the bad planning it is on my fiancés conscious that he has basically sent them to their doom.
I'm not as well-versed or familiar with judicial reviews or H&C applications, but this is also an unprecedented case. In my personal opinion, covid should be a valid reason, and pretty sure your in-laws aren't the only ones in this situation (except for the part where they sold everything). Not sure if they explained the overall covid situation in Israel well when they applied for extension, or if your fiance provided enough proof that he can financially support their stay, but I might expect IRCC to have a bit more leeway with extensions than in pre-pandemic circumstances. The hope is that they do reward people who are honestly trying to maintain legal status while being stranded, because I'm sure there'll be a lot of special snowflakes who think they can stay in Canada indefinitely on a TRV, without properly reporting/extending, until this dies down.