Final answer:
During the Great Depression, the wave of foreclosed properties led to several consequences, including a further fall in housing prices, weakened bank and household finances, and the onset of the Great Recession in 2008-2009.
Step-by-step explanation:
During the Great Depression, when a wave of foreclosed properties hit the real estate market, several things occurred. One of these was that housing prices fell further. This was because many households had borrowed money when prices were high, and when prices began to decline, the value of their homes became lower than what they owed to the bank.
Another consequence was that banks and household finances were weakened. Banks believed they had diversified their risks by buying securities based on mortgage loans, but these turned out to be far riskier than expected.
Lastly, the foreclosure wave contributed to the Great Recession in 2008-2009. The bust in housing prices not only weakened bank and household finances but also led to a severe recession and a decline in the overall wealth of the household sector.