When the Obama Administration decided to create a government run mortgage program to help prevent homeowners from foreclosures, some people loved the idea, while others hated it. However, as of the end of July, it appears as though almost 50% of those in the program have had to drop out.

The Treasury Department has announced that almost 650,000 of the 1.3 million homeowners that had enrolled in the program have now dropped out of it.

According to this report, only a little over 35,000 had their monthly mortgage payments lowered via the $75-billion Home Affordable Modification Program in the month of July. This is the lowest amount since December of 2009.

We could be looking at a continued fall in real estate prices nationwide, if foreclosures start to pick up once again. If this is the case, we could see a cycle begin to form, where more people elect to foreclose on their homes because of falling prices.