The Home Affordable Modification Program was launched in March 2009 to help qualified home owners receive a lower monthly payment and avoid foreclosure. The United States Treasury Department recently reported only 9 percent of home owners eligible for the government's $75 billion loan modification program have been offered help. This equates to just 235,247 loans that were at least two months delinquent.

The government hopes to help up to 4 to 5 million financially distressed home owners modify their mortgages and has promised to reach 500,000 home owners by November 1st. In order to fast track these goals, the government has cracked down on the institutions participating in this program and will be supplying the public with monthly progress reports and will be performing random audits to see if borrowers are being improperly rejected.

Now that the government has drawn attention to these institutions, expect to see a greater number of loan modification applications being reviewed and accepted. If you are one of the many home owners who find it difficult to make monthly mortgage payments or you know someone who needs help, then read on and find out if you are a viable candidate for a mortgage modification, or if refinancing is your best option:

Primary Residence
Is the home you are trying to get a mortgage modification for your primary residence? If not, you may not be eligible for a mortgage modification, since a home must be “owner occupied”. If your home is occupied by tenants, vacant or condemned, you may want to contact Royal Banks of Missouri Mortgage at (314) 878-7272 to determine whether or not you qualify to refinance your current mortgage at a lower rate.

Monthly Mortgage Payments
Are you behind or in danger of falling behind on your mortgage payments? If you are experiencing a great deal of hardship due to a change in your circumstances (i.e. rising mortgage payment or an increased expense such as emergency medical care) and foresee defaulting on your current monthly mortgage payments, contact a Royal Banks of Missouri Mortgage mortgage professional today to see if your current financial situation qualifies you for a mortgage modification. If not, refinancing your current loan may be another viable option to avoid foreclosure.

Mortgage Signing Date
Did you get your current mortgage on or after January 1st, 2009? If your answer is yes, then don't count on being considered for a mortgage modification. Instead contact us directly at (314) 878-7272 to determine alternate options.

Loan Balance
Is your loan balance less than $729,750? The mortgage modification program is only available to those who owe less than $729,750. If you owe quite a bit on your home, you'll want to speak to your Royal Banks of Missouri Mortgage mortgage professional to learn whether or not you are eligible for a mortgage refinance. A refinance could potentially reduce your monthly mortgage payments and save a great deal of money over the life of your loan.

A few other items that may rule out a mortgage modification include both your savings account and employment status. Those home owners with a significant amount of savings in the bank are likely to be turned down for a mortgage modification as they have what may be considered sufficient funds put aside for emergencies and are not shown to be experiencing a financial hardship. In this case, refinancing may serve as a solution and help by decreasing future monthly payments.

On the other hand, those home owners who are jobless and have depleted savings and checking accounts are also unlikely to receive a mortgage modification as the program requires that applicants show proof of current income and that the income is likely to continue for at least nine months. Whatever the case, it is always a good idea to work closely with your Royal Banks of Missouri Mortgage mortgage specialist when researching the best options for your specific situation.

Keeping You Informed
Royal Banks of Missouri Mortgage is dedicated to keeping you informed of the latest market trends and mortgage options. Visit us online at http://royalbanksofmomortgage.com, or call today at (314) 878-7272, to obtain custom loan options designed to fit your needs and help you obtain your home ownership goals.