Jingle Mail

Dictionary Says

Definition of 'Jingle Mail'

A situation where a homeowner mails his or her house keys to a mortgage lender due to an inability to meet mortgage payment obligations and a lack of equity in the property. If a homeowner is upside-down in a mortgage and feels the entire loan is a lost cause, he or she may choose to walk away from the property altogether and relinquish it to the original lender instead of going though the foreclosure process.
Investopedia Says

Investopedia explains 'Jingle Mail'

If a homeowner has difficulty making mortgage payments and is limited in his or her ability to refinance the mortgage - especially if there is no equity in the home or the value of the home has fallen in the market to less than the value of the outstanding loan - there is often little an owner can do but foreclose. This usually occurs when a weak housing market occurs during economic weakness in which job losses increase and salaries stagnate or fall. 

This term was first used to describe the surprise mailings that mortgage lenders received following the savings and loan debacle of 1990-1991. This term resurfaced during the housing and subprime mortgage collapse, which began in 2006.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Mortgage Originator

    An institution ...
  2. Secondary Mortgage Market

    The market where ...
  3. Subprime Mortgage

    A type of ...
  4. Predatory Lending

    Unscrupulous ...
  5. Negative Equity

    When the value ...
  6. Foreclosure - FCL

    A situation in ...
  7. Delinquent Mortgage

    A mortgage for ...
  8. Boom

    A period of time ...
  9. Industry

    A classification ...
  10. Prisoner's Dilemma

    A paradox in ...

Articles Of Interest

  1. Who Is To Blame For The Subprime Crisis?

    From lenders to buyers to hedge funds, it appears everyone has blood on their hands.
  2. The Fuel That Fed The Subprime Meltdown

    Take a look at the factors that caused this market to flare up and burn out.
  3. Find The Best Mortgage Rates

    Search and compare the best fixed and adjustable mortgage rates in your area with Bankrate.com.
  4. Rate Freeze To Cool Mortgage Meltdown

    The U.S. government is offering help to subprime borrowers. Is this a cure or a curse?
  5. Should You Invest Your Entire Portfolio In Stocks?

    It is true that stocks outperform bonds and cash in the long run, but that statistic doesn't tell the whole story.
  6. The Uses And Limits Of Volatility

    Check out how the assumptions of theoretical risk models compare to actual market performance.
  7. Risk Tolerance Only Tells Half The Story

    Just because you're willing to accept a risk, doesn't mean you always should.
  8. 5 Tips For Diversifying Your Portfolio

    A diversified portfolio will protect you in a tough market. Get some solid tips here!
  9. Invest Like A Pro

    By following the strategies of the pros, even a beginner can learn to invest like an expert.
  10. 5 Nobel Prize-Winning Economic Theories You Should Know About

    Here are 5 prize-winning economic theories that you’ll want to be familiar with.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center