Miller, Meredith R.2020-09-042020-09-042011-07-015204626https://hdl.handle.net/1813/70685[Excerpt] Given the recent, sharp decline in housing prices,1 an estimated 20% of homeowners with a mortgage are “underwater,”2 meaning that these homeowners have borrowed more than their homes are currently worth. Of those underwater homeowners, many can still afford to make their monthly mortgage payments. Given the negative equity in their homes, however, they are faced with the decision whether to carry out a “strategic default.”3en-USRequired Publisher Statement: © Cornell University. Reprinted with permission. All rights reserved.underwaterhousing priceshomeownersunderwater homeownersmortgage paymentsstrategic defaultpromissory notemoralityefficiencyCornellreal estatearticle