Jingle Mail

AAA

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 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.

RELATED TERMS
  1. Foreclosure - FCL

    A situation in which a homeowner is unable to make principal ...
  2. Delinquent Mortgage

    A mortgage for which the borrower has failed to make payments ...
  3. Negative Equity

    When the value of an asset falls below the outstanding balance ...
  4. Subprime Mortgage

    A type of mortgage that is normally made out to borrowers with ...
  5. Secondary Mortgage Market

    The market where mortgage loans and servicing rights are bought ...
  6. Mortgage Originator

    An institution or individual that works with a borrower to complete ...
Related Articles
  1. Who Is To Blame For The Subprime Crisis?
    Mutual Funds & ETFs

    Who Is To Blame For The Subprime Crisis?

  2. The Fuel That Fed The Subprime Meltdown
    Personal Finance

    The Fuel That Fed The Subprime Meltdown

  3. Rate Freeze To Cool Mortgage Meltdown
    Credit & Loans

    Rate Freeze To Cool Mortgage Meltdown

  4. 10 Steps For First-Time Home Buyers
    Home & Auto

    10 Steps For First-Time Home Buyers

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center