BROWSE

Jingle Mail

What is '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.

Explaining '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.


Further Reading


The morality of jingle mail: moral myths about strategic default
heinonline.org [PDF]
… 22, 2009, http://www.forbes.com/2009/02/20/behavioral-economics-mortgage-opinions -contributors financial crisis.html … THE MORALITY OF JINGLE MAIL … are considering strategic default are those who can still afford to pay their mortgages despite the economic downturn, and …

Neonyms for a crisis: Cognitive, terminological and socio-pragmatic aspects in the translation of new financial terms into SpanishNeonyms for a crisis: Cognitive, terminological and socio-pragmatic aspects in the translation of new financial terms into Spanish
www.jbe-platform.com [PDF]
… 22, 2009, http://www.forbes.com/2009/02/20/behavioral-economics-mortgage-opinions -contributors financial crisis.html … THE MORALITY OF JINGLE MAIL … are considering strategic default are those who can still afford to pay their mortgages despite the economic downturn, and …

Understanding the global financial crisis: contributions of Post-Keynesian economicsUnderstanding the global financial crisis: contributions of Post-Keynesian economics
www.tandfonline.com [PDF]
… 22, 2009, http://www.forbes.com/2009/02/20/behavioral-economics-mortgage-opinions -contributors financial crisis.html … THE MORALITY OF JINGLE MAIL … are considering strategic default are those who can still afford to pay their mortgages despite the economic downturn, and …

Financial structures and the real effects of credit-supply shocks in Denmark 1922–2011Financial structures and the real effects of credit-supply shocks in Denmark 1922–2011
academic.oup.com [PDF]
… 22, 2009, http://www.forbes.com/2009/02/20/behavioral-economics-mortgage-opinions -contributors financial crisis.html … THE MORALITY OF JINGLE MAIL … are considering strategic default are those who can still afford to pay their mortgages despite the economic downturn, and …

One huge" Minsky moment": lessons from the financial crisisOne huge" Minsky moment": lessons from the financial crisis
www.jstor.org [PDF]
… 22, 2009, http://www.forbes.com/2009/02/20/behavioral-economics-mortgage-opinions -contributors financial crisis.html … THE MORALITY OF JINGLE MAIL … are considering strategic default are those who can still afford to pay their mortgages despite the economic downturn, and …

Seven Triggers of the US Financial CrisisSeven Triggers of the US Financial Crisis
www.jstor.org [PDF]
… 22, 2009, http://www.forbes.com/2009/02/20/behavioral-economics-mortgage-opinions -contributors financial crisis.html … THE MORALITY OF JINGLE MAIL … are considering strategic default are those who can still afford to pay their mortgages despite the economic downturn, and …



FAQ


What is Jingle Mail?

Jingle mail is the act of mailing back a Christmas card to someone who has not sent you one.

Why do people send jingle mail?

People send jingle mail because they want to make sure that everyone gets a Christmas card from them.

What does "default" mean in finance?

Default means failure to meet legal obligations of a loan, for example when a home buyer fails to make mortgage payments, or when corporation or government fails to pay bond which has reached maturity.

What are two types of default?

Two types of default are debt service default and technical default. Debt service default occurs when borrower has not made scheduled payment of interest or principal. Technical default occurs when an affirmative or negative covenant is violated.

How can you distinguish between debt service and technical defaults?

You can distinguish between debt service and technical defaults by looking at the type of violation that occurred on the loan contract. If there was no payment made then it would be considered as debt service default but if there was some other violation such as collateral damage then it would be considered as technical default.

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