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Constitutional Law Keyed to Choper
Home Building & Loan Association v. Blaisdell
Citation:
290 U.S. 398 (1934)Facts
In 1928, the Blaisdells mortgaged their property in Minneapolis to Home Building & Loan Association. After they defaulted, the lender foreclosed, and the property was sold at a sheriff’s sale on May 2, 1932, for $3,700.98. Under Minnesota law at the time of the mortgage’s execution, the redemption period would expire on May 2, 1933. On April 18, 1933, Minnesota enacted the Mortgage Moratorium Law in response to the economic emergency of the Great Depression. The law authorized courts to extend redemption periods upon application and after determining reasonable rental value. The Blaisdells applied for relief under this law, and the court extended their redemption period to May 1, 1935, requiring them to pay $40 monthly toward taxes, insurance, interest, and mortgage debt. The property, which included a fourteen-room house and garage, had a market value of $6,000, significantly higher than the mortgage debt. Home Building & Loan Association challenged the constitutionality of the law as violating the Contract Clause.
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