When banks foreclose on homeowners who are either unable or unwilling to pay back their loans in a timely fashion they often take these homes and put them up for sale in an attempt to get back part of the principal that was loaned out in the first place. Does this have the same effect on the money supply as when a bank calls back a loan from a borrower before it matures? Why or why not?

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The Answer of When banks foreclose on homeowners who are either unable or unwilling to pay back their loans in a timely fashion they often take these homes and put them up for sale in an attempt to get back part of the principal that was loaned out in the first place. Does this have the same effect on the money supply as when a bank calls back a loan from a borrower before it matures? Why or why not?

When Banks Foreclose on Homeowners Who Are Either Unable or Unwilling