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Upside-down borrowers locked into homes

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A new study suggests buyer psychology and tighter credit aren't the only factors keeping would-be home buyers on the fence -- homeowners with negative equity are often "locked in" to their existing homes and are nearly 50 percent less likely to move in order to take a new job, cut their commute time or move to a neighborhood with better schools.The study, Housing Busts and Household Mobility, found that while becoming "upside down" forces many homeowners to move from their homes because of foreclosure, an even greater number have historically ended up stuck in their homes.That's because until housing prices rebound, a sale of their existing home won't pay off their existing mortgage -- let alone generate the proceeds needed for a down payment on their next home.The study's authors -- housing experts at the University of Pennsylvania Wharton School of Business and the Federal Reserve Bank of New York -- warned that the repercussions of "lock in" include les...