Here"s what regularly taken place. Throughout the 20s, many kind of farmers obtained money from financial institutions to buy more land also or brand-new machinery. Farmers pledged their assets as security on the loan. So if a farmer couldn"t make the payments on a loan for land, the financial institution can take back the ascollection the land also and market it to acquire earlier their money. In the 1920s, many type of loans were composed as soon as land also worths and also chop prices were high. After the stock sector crash, few people had the money to buy land, and so land worths plummeted. When a financial institution had actually to forecshed and also sell the land also, they couldn"t
Harvey Pickrel (left) had 2 experiences through foreclosure. His father-in-law, Merle, couldn"t pay off his loan, so the bank marketed his farm at auction. But Merle was luckier than most. He kept farming just now he was a renter rather than an owner of the farm. Later in the decade, Harvey gained behind on payments
And some farmers and townspeople tried to uncover buyers of their property so they wouldn"t have actually a foreclocertain on their record. That"s exactly how Louise Dougherty and her husband, John, bought their initially home.
Written by Bill Ganzel of the Ganzel Group. First written and publimelted in 2003.
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