"Jingle mail:" The Awful Sound Of "Voluntary" Foreclosure
(LATimes.com)
As the foreclosure crisis deepens, banks and lenders are talking openly about one of their worst fears: "jingle mail" – the phrase that describes what happens when a borrower gives up on a house and a mortgage, and simply mails the keys back to the lender and walks away from the mortgage.
Why would a homeowner do such a thing? Because they overpaid for their home, now owe way more than their house is worth, and can't see the point in stretching their finances any longer. The consequences are serious for the borrower: a foreclosure, even if it's voluntary, damages your credit rating for years to come.
But some homeowners are just that desperate.
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