Homeowners walking away from underwater mortgages.

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.