Final answer:
When you stop making mortgage payments, the lender may exercise their right of foreclosure and take legal action to sell your property. Foreclosure can have significant consequences, as seen during the Great Depression when farmers faced foreclosure on their farms.
Step-by-step explanation:
When you stop making mortgage payments on your home, you are inviting your lender to exercise their right of foreclosure on your property.
Foreclosure is a process in which a lender takes legal action to sell a borrower's property to recover the unpaid mortgage debt. The lender typically sells the property at a foreclosure auction to recoup the outstanding balance.
An example of foreclosure during the Great Depression can be seen with farmers who couldn't make mortgage payments on their farms. Many of them were forced into foreclosure, leading to significant dislocation and financial hardships.