Once you have made the decision to apply for home mortgage modifications, the first step will be research. This is the process where you find a few institutions (maybe even 4 or 5) and rank them according to your needs and requirements. It may help to set up a list e.g. Low interest rates, speed of loan approval, legal costs etc. The very first requirement on your list however, should be accredited mortgage modification. But what makes accreditation so important? Why is it so necessary?

As the trend for credit repair rises, there are hundreds of small, fly-by-night companies that have stepped up to "help and assist" with mortgage modifications. Although many of them do a good job, there is a serious risk if they are not accredited. There have been quite a few horror stories, particularly in the property market, of people being duped. The classic case is when a couple approaches a financial institution, gets their mortgage modification agreement, signs it and then finds out afterward that they have to pay between $2000 and $3000 for "legal and admin fees". What's even worse is the fact that very often their new loan turns out to be exactly the same monthly installment as before. Suddenly all sorts of strange additional fees have been added. This kind of problem can be avoided by making sure that an attorney or legal professional has a look at your agreement before you put pen to paper. There are many benefits to going with larger, accredited firms.

Accreditation requires compliance to strict government rules. This includes regular reviews and audits, maximum charges for fees and specific guidelines for loan qualification. Although you may find the process a little more tedious, you stand a higher chance of protecting yourself from individuals who just want to make a quick buck out of the deepening recession. It won't be hard to find accredited banks and financial institutions as it is something they are most likely to advertise quite proudly. A good rule of thumb is the larger banks, as government compliance and accreditation is mandatory for them. If you do find a smaller company that is willing to give you a lower interest rate, be sure to analyze your loan agreement with a hawks' eye.