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GCSE History · key term
The seizure of property by a lender when its owner cannot repay the loan secured against it.
Used by AQA and OCR
Paper 1
Revise: Society during the DepressionFarmers who could not meet repayments faced foreclosure: banks seized their farms. Families could therefore lose both their homes and their means of earning a living, forcing some to become migrant labourers.
Paper 1
The legal process through which a lender takes possession of a property because the borrower has failed to make mortgage repayments.
Revise: The Great Depression and the 1932 ElectionWhen crop sales no longer brought in enough to meet mortgage repayments, banks could take their farms through foreclosure. Farming families could therefore lose their livelihood and their home together. Some abandoned their land and travelled elsewhere looking for work.
Link evidence to its consequence: falling crop prices reduced farmers’ incomes, making loan repayments harder and increasing foreclosures.
Link economic effects to social consequences: bank failures could destroy savings, while falling farm incomes could lead to foreclosure and homelessness.
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