It may take years to recover home values. A person who purchased a three bedroom house at $200,000 in Maricopa, Arizona in October 2005 is valued today at $80,000. But due to heavy recession he is not able to make his mortgage payments now. His house will be foreclosed next year. This is just a simple example; many home values have dropped drastically this year. It may take years for real estate market to recover.

There was a time when home value prices were soaring in most parts of the country especially in Arizona, California, Florida and Nevada - during a brief period of easy lending - especially from 2002 to 2006. Till now, home values have fallen nationally on an average of 19 percent from their peak. Prices would fall at least 17 percent more to reach their traditional relationship to household income, according to a survey. Since the price of home values has fallen drastically, has lead to worst financial crisis since Great Depression. Some fear that that due to foreclosures and tight credit crunch there may be more fall in price of home values which may affect millions of families and many banks may go into insolvency. If there is another 20 percent decline in prices, you will see bailout in Banks.