Tip of the Coming Iceberg

From Michelle Malkin's column

The Politics of Foreclosure...I certainly have sympathy for borrowers who may have been misled. But for every "predatory lender" out there, you can find a predatory borrower. For every fraud-minded loan officer or mortgage broker, you can find a homeowner who secured financing and bought a home he knew he couldn't afford with little money down and bogus or no income verification. Washington is silent about this reckless behavior, which it is encouraging both tacitly and explicitly.

Now comes word from California that some of these homeowners Washington is rushing to rescue are simply walking away -- abandoning their mortgage commitments and contractual obligations. Poof: "Foreclose me. ... I'll live in the house for free for 12 months, and I'll save my money and I'll move on," one homeowner blithely told the Los Angeles Times this week...

...A Wachovia executive noted during a conference call that they are "people that have otherwise had the capacity to pay, but have basically just decided not to because they feel like they've lost equity, value in their properties..." Some are bailing for cheaper homes in the same neighborhoods. There's even a term that's become popular over the last couple of years -- "Jingle Mail" -- that describes when homeowners cut loose and mail in the keys to the bank. Ho, ho, ho...

This is gonna be such a mess