How does jingle mail work

The one main difference between now and the s is that now credit bureaus have access to mortgage information. If you make a strategic default, it will follow you. Can't see the forum? Click here. Pseudonyms will no longer be permitted. By submitting a comment, you accept that CBC has the right to reproduce and publish that comment in whole or in part, in any manner CBC chooses. Please note that CBC does not endorse the opinions expressed in comments. Comments on this story are moderated according to our Submission Guidelines.

Comments are welcome while open. We reserve the right to close comments at any time. Join the conversation Create account. Already have an account? Calgary Jingle mail rears its ugly head in Alberta again High debt, lost jobs, and Alberta-only rules are leading to worry about the return of jingle mail in the province. Social Sharing. One of the big bads from the s is starting to emerge again in Alberta. CBC Forum House keys sent to the bank? Your thoughts on mortgage defaults Home sales and prices to fall even further in , Calgary Real Estate Board projects Calgary real estate market now has 'strong' evidence of problems: CMHC It's enough of a concern that the federal government is watching the Alberta market closely.

CBC Forum on mortgages "Sending house keys back to the bank seems very irresponsible. Jingle mail was an enormous problem in Alberta in the s, when mortgage rates were hovering around 20 per cent and people began leaving the province to find work elsewhere.

It made a rough housing market even worse when banks were forced to sell off abandoned homes at a discount.

It also played a role in the U. Bruce Alger on strategic defaults 6 years ago Tax Resources. Real Estate Resources. Comprehensive real estate investing service including CRE. Learn more. Already a member? Sign in here. Access to timely real estate stock ideas and Top Ten recommendations.

Learn More. A merry term describes an ominous trend for the housing market. Real estate has long been the go-to investment for those looking to build long-term wealth for generations. Let us help you navigate this asset class by signing up for our comprehensive real estate investing guide.

Contrary to the merry-sounding name, jingle mail signifies grim times for the housing market. The more industry-correct name for this is voluntary foreclosure. The borrower no longer sees a way to catch up on their mortgage, or they calculate that to do so would put them in an otherwise untenable financial position , so they move out on their own schedule instead of waiting for the bank to foreclose. Sure, though in the past it was less likely that landlords would let several months go by with rent uncollected.

And can it apply to commercial real estate? Lately, yes, and not only investors but real estate investment trusts REITs have been dealt a death blow, when, for example, an entire mall property or mixed-use development has in effect jingle-mailed all the keys because none of their tenants can pay anymore.

In commercial real estate, a voluntary title transfer is called a "deed in lieu" and is a strategic move to head off foreclosure. This is when a borrower deliberately and with forethought stops making payments, though they might be able to because the property has become a bad investment.

In , the situation was slightly different in that so many homes had significantly decreased in value. This is the term for when a borrower owes more than an asset is worth.

Is it illegal? Technically, perhaps not. That said, if a lender has the way to go after a borrower and reasonable belief that they can collect, they will. As we head into a new administration and hope every day for another COVID relief package, avoiding the sounds of jingle mail from every which way is surely a priority. Our team of analysts agrees. These 10 real estate plays are the best ways to invest in real estate right now.