During the first six months of 2008, the state legislatures of Massachusetts, Minnesota, and New York considered legislation to impose moratoria on foreclosures, and legislation for a national moratorium was introduced in the U.
However, the clamor for compulsory foreclosure moratoria grew louder as the Depression worsened and the number of foreclosures rose.
During the Depression, many states enhanced borrower redemption rights, limited deficiency judgments, or made other changes that favored borrowers, and several states imposed moratoria on foreclosures.
Several states directed their state courts to grant moratoria in deserving cases, but little guidance was provided to the courts about how to determine which borrowers deserved relief.
The 27 states that adopted foreclosure moratoria during 1933 and 1934 are listed in Table 1, and the geographic distribution of states with moratoria is shown in Figure 4.