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hi guys this is erica from gokuche capital now before i begin be sure to subscribe to our youtube channel and turn on notifications in 1931 amid the ravages of the great depression the foreclosure rate docHubed 1.4 percent by 1934 it is estimated that half of all mortgages were delinquent mortgages as an institution had been expanding through the roaring 20s where before loans for the purchase of a home had largely been based out of community savings and loans programs a commercial market had started in the previous decades driven first by insurance companies now these mortgages look very different from what we think of as a mortgage today they often had a term of only five years perhaps 10 if you were lucky they were not amortizing which meant that borrowers made interest only payments and then paid a large balloon at the end of the term and required a down payment of around 50 percent now one would think that with such a large down payment these mortgages would have been more secure t