I just finished reading an article about "locked in" homeowners and I could not help but agree with the article. Here is what the article is saying and what I am also seeing. There is large number of homeowners that would like to sell their home and move on to another home but are unable to due to the lack of equity or lost of equity. Nearly 50% of homeowners are less likey to move in order to take a new job, cut their commute or move to a neighborhood with better schools due to being "locked in".  So, being "upside down" in your home not only forces homeowners to sell due to foreclosures but an even greater amount have historically ended up stuck in their homes too. With the tighter standards in lending that are requiring a larger amount in a down payment homeowners are not able to get that downpayment from the sale of their homes anymore. Some families will not be able to move to access better jobs in alternative labor markets, while others who would like to move accross town town for better schools or a different size home will be unable to do so, too. The net impact on negative equity has been to reduce, not raise, mobility may surprise some given the high number of defaults and foreclosures in the current enviroment. I have seen this first hand in different scenerio's over the last year and all the homeowners I have represented decided to stay put. How do we get around negetive equity? Time, home values will go up again. What if you have to move now? You will need to come up the difference of the shortage or try for a shortsale. In the meantime, if you don't have to sell but would like to sell sometime in the future, start saving money!!!