Final answer:
The protection for home owners to avoid losing their homes was created by the Home Owners' Loan Corporation Act and the Federal Housing Administration (FHA). These measures aimed to provide refinancing for home mortgages, encourage inexpensive loans, and stimulate homeownership. However, discriminatory practices limited access for nonwhite veterans and minority groups.
Step-by-step explanation:
The protection extended to home owners to avoid losing their homes as a result of an installment purchase of goods or services was created by the Home Owners' Loan Corporation Act and the Federal Housing Administration (FHA).
The Home Owners' Loan Corporation Act, established in 1933, provided refinancing for home mortgages, offering lower interest rates and lower monthly payments to help families avoid foreclosure. The FHA, created in 1934, encouraged banks to make inexpensive loans to people seeking to buy new homes while ensuring housing was built up to new safety standards.
During the postwar period, the GI Bill's home-loan program also allowed millions of American families to become suburban homeowners. However, discriminatory practices like redlining and restrictive covenants made it difficult for nonwhite veterans and minority groups to benefit from these programs.
These measures aimed to stimulate the housing sector of the economy and increase homeownership rates, but they also perpetuated residential segregation.
Overall, the government implemented various measures to protect homeowners and make homeownership more accessible, but there were still systemic issues and barriers for certain groups.