Released: February 10, 2010

Underwater mortgages halt some move-up buyers

Source: Stephanie Armour, USA Today

Chris and Candice Basso would like to move up to a larger home this spring, taking advantage of a federal tax credit worth up to $6,500 for repeat home buyers.

But even a big tax credit won’t be enough to lift them into a bigger, better home.

The Centreville, Va., couple are trapped in a two-bedroom townhouse that’s worth less than their unpaid mortgage. They face the same predicament with a condo that they own and rent out. Unable to sell either property for what they owe and with their equity wiped out, a new mortgage is out of the question.

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