Many South Florida homeowners who can afford to make their mortgage payments are choosing not to, forcing the lender to foreclose. It’s called strategic default.
Andres Duque thought he got a real steal when he paid $125,000 for his Little Haiti condo. But four years later, similar units are selling for $35,000 and even less.
William Hardin, a real-estate professor at Florida International University, said people have a moral obligation to honor their mortgages when they can.
“The vast majority knew what they were doing and were taking a risk, and the fact of the matter is [the mortgage] is a contract. We live in a world where contracts have to be honored. It’s the way our economy works.“
Read: “Homeowners walking away from underwater mortgages,“ an article from the MiamiHerald.com.
ADDITIONAL MEDIA COVERAGE
- October 25, 2009: “South Florida homeowners walking away from underwater mortgages,“ The Palm Beach Post. Read article.