According to Mark Vitner, a senior economist at Wells Fargo: “Housing is going to remain dead in the water through the middle of  … As foreclosures come back on the market, that will put downward pressure on prices.”
There are several reasons housing in 2011 is predicted to be either flat or down. First, unemployment is still high. Second, a delay in foreclosures in 2010 (because of unscrupulous foreclosure practices by banks) means more foreclosures in 2011 as banks start repossessing the stalled inventory. Those two factors lead to further drops in prices which exacerbates the problem.
In essence, more foreclosures lead to lower home prices which leads to still more foreclosures. Ending this cycle is proving difficult.
The market will recover eventually. Unfortunately, that doesn’t offer immediate help to homeowners in trouble. There is some measure of immediate help available through a bankruptcy filing. A Chapter 13 filing helps homeowners who are behind on their payments catch up. A Chapter 7 filing can help homeowners clear away other debts so they can concentrate on paying the mortgage.
As always, the specifics of your personal situation is best discussed with an attorney. If you live in Western North Carolina, I would be happy to speak with you during a free initial consultation where you can learn what options are available to help you.