At the heart of the housing crisis in the United States lie two problems: foreclosure homes and falling home values, and now many are blaming the housing crisis in the U.S. on the world’s current financial crisis.

Currently families all over the United States are finding it very difficult to keep up with mortgage payments, and with property values falling, they are actually losing money on their homes rather than gaining appreciation value. This slowdown in the housing market has had a huge effect on the U.S. economy as a whole, and despite big interest rate cuts by the Federal Reserve, many are worried that the U.S. is in an economic recession, and that predicts bad things not just for the U.S., but for the entire world’s lending and investment structure.

Investors have lost billions on real estate now, and the much publicized Bear Stearns bankruptcy is only a facet of that. It’s the average homeowner who’s being hit the hardest, as it’s become nearly impossible to keep up with mortgage payments and the rising cost of living for many homeowners. And as more foreclosures come on to the market, the more negatively they effect the communities around them, contributing to falling property values and a flooded market with ever decreasing demand.

As real estate continues to lose money and people watch as their most valuable investment begins to become less valuable than what they paid for it, the market continues to digress, and the future is uncertain.