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Constitutional Law Keyed to Maggs
Home Building & Loan Ass’n v. Blaisdell
Citation:
290 U.S. 398 (1934)Facts
In 1933, during the Great Depression, Minnesota enacted a Mortgage Moratorium Law, which authorized parties facing foreclosure to obtain from a court an extension of the time during which the mortgagee could not foreclose and an extension of the period of redemption after foreclosure. Extensions could be granted only until 1935, after which the statute would no longer be in effect. Extensions were conditioned upon the mortgagor’s making continued payments, determined by the reasonable income or rental value of the property, to help to defray the cost of taxes, insurance and the like. The Blaisdells obtained an order extending the contractual redemption period from 1932 to 1935 on the condition that they pay $40 per month to appellant, the mortgagee, during the extended period. Appellant challenged the constitutionality of the Act under the Contract Clause.
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