J254: Jingle Mail


Another weekend bank bailout . . . I am so disgusted by the bailouts, the assistance going to the wrong places. I read some time ago about something called Jingle Mail. Here is another source for the definition of jingle.
Phrase of the day
Jingle Mail: where homeowners have mailed in the keys because they can't make the payments and no longer have any equity in their homes.

That phrase was a prominent feature of the S&L bust and ensuing real-estate debacle in 1990-1991 -- and something we'll be hearing lots more about in the future.
However, with the new bankruptcy law, some homeowners will still owe money on their homes even after they mail in the keys.

Yet, Pacific Views states the following:

What makes Jingle Loans more interesting is that in many states, California being one, the first mortgage is known as a non-recourse loan which means the loan papers were drawn up so that the house itself is the full collateral for the debt. So if the house value falls and the buyer finds themselves in negative equity land, then they can just turn the keys back into the mortgage holder and no longer owe anything on the house. The mortgage holder is now the one holding the house worth much less than the original loan value.

This is over-simplification as there are property taxes and other mortgage contractual issues not addressed in this blurb. But, I like the concept. These are moral issues that most American taxpayers, citizens are held to the ‘rules’ while there is a whole class, including political leaders, who are not held to the same rigors of the law or rule of the land. Fuck that.

Besides tips on how to live off the grid, grow food and conserve water; how about us helping each other walk away from mortgages with negative equity? While I still believe in taxes and supporting the public good, I think it is clear that watching a financial and otherwise protected class simply plunder the public treasury is no longer the ‘civilized’ thing to do.

4 comments:

daharja said...

I think we all need to do a re-think on what constitutes value.

If you can grow food on a property, or access your work easily from it, it has little value.

Land and acessibility is everything.

Likewise, I think we'll start to see families pooling in together and sharing homes more, when houses are lost to debt.

In the meanwhile, don't buy *stuff*. It will be floating round in bucketloads as people are left with no house but heaps of belongings and flog their belongings on the net to try to raise capital.

I think I'll be buying everything the kids need secondhand this year.

Or my mother will buy it. She idiotically refuses to give us money, but instead buys heaps of crap for the kids that they don't need.

katecontinued said...

I think you are right about this year being one of people scrambling. Already I am seeing the heaps of stuff on Craig's list.

It is a little hard for me to not react with some incredulous remark like, "Are you new? Have you not read ANYTHING in the last three or four years?"

Must take a deep breath and just let the slow catch up. Everyone can hear things in their own time. Or more correctly, everyone finds the ability to tune out the 24/7 consumerist noise in their own time.

And, just maybe some will just be buffeted with results without any thought or realization at any time. Sad.

katecontinued said...

Daharja, just reread your comment. I think your second sentence should read, "If you can't grow food . . ."

The line about your mom really struck me. I think there are millions of parents who do this. Buying stuff with an attitude that it is the correct (even generous) thing to do is a marketing dream come true. Sad.

daharja said...

Oops, yes - 'can't!'

Nasty TYOPs ;-)

I'll put it down to it being Internation Talk Like A Pirate Day. All the Yaarrrring is getting to me - I've had to practice all week with two overly keen preschoolers!