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Constitutional Law Keyed to Feldman
Home Building Ass’n v. Blaisdell
Facts
The Minnesota Mortgage Moratorium Law of 1933 authorized relief from mortgage foreclosures and execution sales of real property during the Depression. It granted local courts authority to extend the period of redemption for foreclosure sales “for such additional time as the court may deem just and equitable but not beyond May 1, 1935.” Such extensions were conditioned upon an order requiring the mortgagor to “pay all or a reasonable part” of the fair income of rental value of the property toward the payment of taxes, insurance, interest and principal.” No deficiency judgment could be brought during such a court-extended period of redemption. The Defendants, the Blaisdells, obtained a court order under the Act extending the period of redemption on condition that they pay the Association $40 per month, thus, the court modified the lender’s contractual right to foreclose. The highest state court sustained the law as an “emergency” measure.
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