One of the big bads from the 1980s is starting to emerge again in Alberta.
Jingle mail the act of walking away from an underwater mortgage by mailing your keys back to the bank is a peculiarity of the Alberta residential market and an act of desperation. However, a combination of high debt and lost jobs make it an option in a province going through a significant economic reckoning.
It’s enough of a concern that the federal government is watching the Alberta market closely. Jingle mail, or strategic defaults, weaken the housing market and increase loan losses among Canada’s banks.
‘People saying that we can’t make a go of it and mail the keys to the bank.’
– Don Campbell, Real Estate Investment Network
Read the full article at: http://www.cbc.ca/news/canada/calgary/jingle-mail-alberta-housing-1.3430867