Why Send Jingle Mail?Here are reasons why a home owner might decide to mail the keys to the lender:
- The owners believe they should walkaway from a home when its value drops below that of their mortgage.
- The owners can no longer make the mortgage payment.
- Short sale denial by bank.
Do Lenders Want Jingle Mail?Do lenders want the house keys? For starters, I imagine most home owners send the keys to the address used for mortgage payments and not to the bank's REO department. So, the keys are probably lost or thrown out.
Even if the right entity should somehow end up with the keys, the locks will be changed and, in some neighborhoods, the front door bolted.
Home owners should save their postage. Rates keep going up, you know.
At the time of writing, Elizabeth Weintraub, DRE # 00697006, is a Broker-Associate at Lyon Real Estate in Sacramento, California.