Despite government efforts to ease the country’s worsening foreclosure problem, it seems that the Obama administration’s flagship mortgage relief program continues to garner unfavorable responses from its intended recipients.

Data released by the Department of Treasury revealed that more than half of those who have applied to get their mortgage payments lowered have fallen out of the program. As of last month, 680,000 homeowners, or 51%, have been disqualified. The figure jumped from 48% in July.

The mortgage relief program, which was launched in February 2009, was geared towards helping 4 million homeowners lower their mortgage payments and avoid foreclosure. However, of the 1.3 million people who have enrolled, only about 449,000 borrowers or 34% have received permanent loan modifications and are making their payments on time.

With the series of problems encountered by the mortgage relief program, many homeowners believe that it would be better to walk away from their mortgage than to wait for the government to help them. Critics, on the other hand, said the Obama administration should have just let distressed homeowners lose their properties.

Despite the criticisms, however, government officials vowed to continue efforts to help alleviate the country’s worsening problem with foreclosures. “We’re certainly not going to stop fighting to turn things around,” said Raphael Bostic, an assistant secretary at the Department of Housing and Urban Development.

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