Don't they still owe the money? They can walk away from a mortgage that they can afford to pay, and no one comes after them for anything? (If not, WOW! If so, what's the point of walking away?)

Each state has different mortgage laws. In some state, you can walk away and not owe any money. Your credit is shot, but they can't come after you. They get the house back, but that is it.

In other states, you are on the hook for any shortfall. They can sue you, garnish your wages etc. and force you into bankruptcy. If you are already broke, that isn't all that different than option 1.

Seems to be easy in Florida.

In recourse states where the lender can go after the difference between the mortgage balance and what they sell it for, there are companies buying the debt and holding it for several years until the people get back on their feet financially and then the companies are going to sue them! So not everyone walking away today will be happy in the future.

Florida is technically a recourse state, but they have a lot of rule surrounding it. eg you can't garnish the wages of the primary wage earner. You also can't go after primary residences. In practice, that means that lenders don't go after most borrowers unless they have significant assets.
They have the right to sue the borrower and try to collect the debt though, so nothing stops them from sitting on these loans for years as clemrick says.

In a recourse state the note holder can pursue the owner.
In a non-recourse state they cannot.

Even in non-recourse states there are often strict rules.
Only the first may be non-recourse, it must be a primary residence, and other conditions.

'Fail' any of the tests and the non-recourse provision is waived.

I use to be against any agreement you willingly signed into and later determine it isn't in your interest and decide to walk away.

Unfortunately, many lenders/financial institutions did the same thing and had the government bail them out or help them sell debt,etc. to another financial institutions. It isn't ideal but the bar was set high and now everyone can make their choice.

It is an unfortunately consequence of profit/greed but maybe things will eventually reset to the normal 20% down, you save until you can buy and if too expensive you rent.

"things will eventually reset to the normal 20% down"

That is pretty much long gone, along with ten year mortgages.

Even is prices some down a lot in some areas, it wil be almost impossible for even a working couple to save up for 20% down with values sedately climbing at even 2-3% a year.

The values on and around many large cities have been very high for 30 years, not just the past ten.

Vacant building lots within 20 miles of Washington, DC routinely go for $400,000+.
People buy small one story houses from the 1950s a knock then down for the lot.
Keep in mind that the 'knockdown' price is the market value of the house and lot, and anyone trying to start out has to compete with that price.

Or you can move further out where prices are at least more reasonable and spend 60 minutes+ each way to get to work and be buying a new car every two years as they roll past 100,000 miles.
Not very safe to drive them on the 70 MPH bumper to bumper traffic that gets started around 6 AM in the furhter burbs.

rooseveltl: "Unfortunately, many lenders/financial institutions did the same thing and had the government bail them out or help them sell debt,etc. to another financial institutions. It isn't ideal but the bar was set high and now everyone can make their choice."

Agreed 100%.