De facto is a Latin term meaning “from the fact.” When applied to economic and social issues like segregation, it describes a situation that results from the fact of difference and division between groups. McGhee cites the example of white families who congregate in predominately white neighborhoods, to live among people who look like them and to pursue supposedly “better” schools, as an example of de facto segregation. De facto segregation is best understood in contrast with de jure segregation, or the enforced separation of groups by law, as seen in the Federal Housing Authority’s policy of redlining.

A foreclosure is a process whereby a lender recovers money from a borrower who has stopped making mortgage payments by forcing the sale of their home. Foreclosures have risen significantly in the United States, from 183,000 in 2001 to more than 1 million in 2010, partly due to the 2008 financial crisis. These foreclosures have cascading effects throughout society, from increased suicide rates to reduced student achievement. Like many other harmful practices identified in the book, they were first used on Black homeowners.