The report is out and once again it looks bad for the Obama administration. Turns out the flagship mortgage-relief effort is failing, surprise the foreclosure crisis is still in full force. More than half of those who have enrolled have fallen out of the program, around 680,000 homeowners applied to get their mortgage payments lowered, 51 percent, have been disqualified. The hard numbers is 2.5 million homes have been lost to foreclosure since the recession started in December 2007. The number should rise to around 3.3 million over the next four years. Foreclosures and distressed sales are a major reason the economy has struggled. The Obama administration grand plan in February 2009 was to help up to 4 million homeowners lower their mortgage payments to help avoid foreclosure. Like every other inflated number from this administration as of last month, only about 449,000 borrowers have received permanent loan modifications. The best thing for many homeowners was to walk away from their mortgages then waiting for help. The Obama officials in another true sense of not getting say most borrowers who exit the program are not headed for foreclosure because many ultimately get help from their lenders. Still, they say they are not ruling out expanding or reworking the government’s housing efforts.