What is a jingle mail ?

When a borrower walks away from his or her mortgage payment and return the keys to the bank before it announces foreclosure of the property, it is known as jingle mail. This refers to the sound an envelop full of keys creates when the bank receives it. Instead of waiting for the foreclosure process, the borrowers who could not make their mortgage surrender their property keys early.

Banks use terms like “reduced motivation to maintain possession” and “voluntary foreclosure” to illustrate the jingle mail phenomenon. However, this phenomenon started to be a serious challenge for lenders since the start of 2008. Most lenders are in the money handling business, not real estate management, so the abrupt appearance of large property inventory management was difficult for many banks.

There are some advantages for borrowers if they walk out from mortgage, although there are some serious repercussions to consider. Returning the keys to the bank in advance prevents the borrowers to have a foreclosure proceeding reflecting on their credit. However, their loan will be in default making it harder for them to borrow money in the future. The main advantage to jingle mail in the eye of some borrowers is that it enable them to walk out of the mortgage as soon as they realize that they cannot pay it and to avoid making more payment for losing proposition.

A benefit for the borrowers is the cash for keys, in which the bank pays the borrower to vacate their home. Cash for keys or jingle mail is the preference of most banks due to the good condition of the homes returned making it easier for them to sell. Reasons for borrowers to go for jingle mail ranges from falling house price to growing interest rates. Subprime mortgage crisis usually caught up many borrowers causing mortgage they could not pay as well as their increasing principal balance that makes it more difficult to handle. When these incidents go with a job loss, jingle mail would be the best option.

Related Items

16 Responses to “What is a jingle mail ?”

  1. a883868 said:

    883868 beers on the wall. sck was here

  2. Albertina Stittsworth said:

    hey there and thank you for your information – I have certainly picked up something new from right here. I did however expertise a few technical issues using this website, since I experienced to reload the website many times previous to I could get it to load properly. I had been wondering if your web host is OK? Not that I am complaining, but sluggish loading instances times will often affect your placement in google and could damage your high quality score if ads and marketing with Adwords. Anyway I am adding this RSS to my e-mail and can look out for much more of your respective exciting content. Make sure you update this again soon..

  3. Discount Windows 7 said:

    Your article is very uesful to me and help me solve a big problem. I appreciate you very much. But i have some problem of understand the last paragraph. Can you say some details for me?

  4. Vitacon 0.5x wide video said:

    This really is the correct blog for anybody who would like to learn about this topic. You’re aware of a good deal its virtually challenging to argue on hand (not that I in fact would want…HaHa). You in fact put the latest spin more than a subject thats been revealed for many years. Great stuff, just wonderful!

  5. Lavette Kirkham said:

    nicely written

  6. Zenaida Mullane said:

    great post

  7. Dortha Melone said:

    I dugg some of you post as I cogitated they were very useful very helpful

  8. Internet Marketing Webinar Replays said:

    Some truly good articles on this internet site, appreciate it for contribution. “Gratitude is merely the secret hope of further favors.” by La Rochefoucauld.

  9. Jerrod Panciera said:

    I follow

  10. nurses said:

    Its good as your other articles : D, thanks for putting up. “So, rather than appear foolish afterward, I renounce seeming clever now.” by William of Baskerville.

  11. {Agathaggelos|Agathoklhs|Agathonikos|Agaphtos|Agapios|Agis|Agorastos|Adam|Adamos|Adrianos|Adwnis|Aetideys|Aetos|Athhnodwros|Aimilianos|Aineias|Akribos|Akylas|Albertos|Aleksanter|Alkaios|Alkinoos|Alfredos|Ambrosios|Amyntas|Anagnwsths|Anakrewn|Ananias|Anato said:

    I keep listening to the rumor talk about getting boundless online grant applications so I have been looking around for the most excellent site to get one. Could you tell me please, where could i find some?

  12. Alexandria Serpe said:

    fantastic publish I want to say thanks!

  13. Nolan Cornelius said:

    great submit I would like to say thanks!

  14. Erin Wieder said:

    Wow, I have a blog too but I can’t write as well as you do. Good stuff.My ICQ:407290904

  15. Chadwick Dygert said:

    I was recommended this blog by my cousin. I am not sure whether this post is written by him as no one else know such detailed about my problem. You are amazing! Thanks!

  16. Sternum Pain Treatment said:

    I have never seen such impressive ideas presented in writing. Your writer has a very unique way of presenting information in such a way as to catch the reader’s attention.




Message:

[newtagclound int=0]

Subscribe

Recent Comments

Recent Posts

Archives