jingle mail
Slang for mailing keys back to a lender when walking away from an underwater mortgage — named for the sound of keys in an envelope.
Example
“During the housing crisis jingle mail became common as millions of homeowners walked away from underwater properties.”
Memory Tip
JINGLE MAIL — keys in an envelope. Walking away from a mortgage with no looking back.
Why It Matters
Understanding jingle mail is crucial because it represents a significant financial decision that can severely damage your credit score and have long-term consequences for your ability to borrow money. Walking away from a mortgage obligation can result in foreclosure, deficiency judgments, and years of negative marks on your credit report that affect everything from future home purchases to job opportunities.
Common Misconception
Many people mistakenly believe that mailing back their keys simply ends their mortgage obligation with no further consequences. In reality, lenders can pursue deficiency judgments to recover the difference between what they sell the home for and what is owed on the loan, potentially leading to wage garnishment and other legal actions.
In Practice
A homeowner purchases a house for 300,000 dollars with a mortgage, but the housing market crashes and the home is now worth only 200,000 dollars. Rather than continue paying 300,000 dollars for a property worth significantly less, they mail their keys to the lender. The lender forecloses and sells the home for 180,000 dollars, then pursues the owner for the 120,000 dollar deficiency plus legal fees and interest.
Etymology
American financial crisis slang from 2008-2009 — keys jingling in the envelope sent to the bank.
Common Misspellings
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