# Jingle Mail (also used in German)

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- Post ID: 588214
- Modified: 2023-07-25T21:01:52+00:00
- Language: en

## Definition

In the U.S., when the current market value of the property is less than the mortgage on it, homeowners can walk away (to leave callously and disregarding the distress of the creditor) and send the creditor bank the key by mail (hence the name: jingle mail). - In the course of the subprime crisis, this was used en masse. Most of these people had long since spent the money borrowed on the respective house for other purposes, especially on consumer durables such as cars and on travel. - In the majority of U.S. states, a bank can sell a property through foreclosure. However, there is no recourse against the borrower of the loan. In many cases, the proceeds from the auction of the property are far below the amount of the loan granted by one or more banks (negative equity; in the jargon of financial journalists: under water). - In Europe, borrowers remain liable for the difference between the market value of a property and the amount of the loan on it. - See balloon loan, Community Reinvestment Act, loan, nonstandard, decapitalization, Home Mortgage Disclosure Act, lending rule, air securities, mortgage equity withdrawal, ninja loans, originate-todistribute strategy, panic selling, securities, toxic, blowback effect, overconsumption, submarine effect, lemon trade, twenty-two-eight loan. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

## Machine-readable

- Generator: Merk Knowledge 2.0.0