Jingle Mail

Quick Summary

A slang term for when a borrower walks away from a property, mailing the keys to the lender.

ELI5 Explanation

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It is handing the keys back to the bank when you owe more than the house is worth.

Detailed Explanation

This is associated with non-recourse mortgages, heavily used during housing crashes (like in Alberta or the US). If the mortgage is non-recourse, the lender cannot pursue the borrower's other assets to recover the shortfall.

Example

A borrower in Alberta mails their keys to the lender because their property value dropped by 30%.

Why It Matters

It highlights the difference between recourse and non-recourse legal environments.