A new commentary by Karl Denninger
Thursday, February 25. 2010
Jingle Mail, Jingle Mail, Jingle All The Way!
From the horse's ass, er, mouth! Chairman Dodd on “jingle mail” http://www.starkreports.com/2010/02/...n-jingle-mail/
Chairman Chris Dodd on "Jingle Mail"
VIDEO (1:04): http://www.youtube.com/watch?v=kYmO3...layer_embedded
"Why in the world should these homeowners pay that mortgage? After all, their debt was secured by the property, just like the commercial cases cited above. In most cases, they’d be fulfilling the terms of their contract by mailing in the keys and walking away from the house. In fact, by doing this, they’d save almost enough money to purchase the next house that sells in a foreclosure sale – perhaps even the one they’re in!
A word of caution: none of this is legal advice. Talk to a lawyer, accountant and financial advisor before considering this route. In some places (but not most), mortgage-holders are allowed to seize property above and beyond the real estate that secured the loan.
The point I’m making here is that we only hear about “moral obligations to pay debts” when it’s the consumer. Business walk away from bad deals all the time.
I asked Senator Chris Dodd about this earlier this evening (I mistook JP Morgan for Morgan Stanley, please forgive the error). As Chairman of the Banking Committee, he was careful about what he said, but what he said was sensible: talk to counsel and determine what is best for you."
SOURCE: http://market-ticker.denninger.net/a...-The-Way!.html