Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

Jingle Mail

What it is:

Jingle mail occurs when a property owner sends his/her keys to the mortgage lender because he/she is unable to continue to make payments.

How it works (Example):

Jingle mail -- denoting the jangling sound of keys in an envelope -- is the act of relinquishing one's obligations on a property by literally mailing the keys to the lending bank. For instance, if Jack can no longer make payments on his mortgage from Bank ABC and he wants to sever his connection to the property quickly, he may mail the house keys to Bank ABC and stop making mortgage payments. In so doing, he gives bank ABC control of the mortgaged property.

Why it Matters:

Insolvent property owners typically seek foreclosure or attempt to refinance their property if they are unable to make mortgage payments. Property owners usually only send jingle mail if they feel they have little or no equity in the property or have an outstanding mortgage that exceeds the value of the property itself.