Question

During the Depression foreclosure rates skyrocketed. What was the main cause? a.People went into foreclosure when they left their homes to find jobs in other cities. b.When banks folded they cancelled their mortgages and homes went into foreclosure. c.The interest rates on home loans ballooned and families could no longer afford payments. d. Families without employment had little in savings to pay their mortgage.

Answer 1

C. With the economy flat-lining, banks had to find a way to rake back in money so they increased the interest rates. Since people were limited jobs in that time, they were unable to pay off their mortgages.