Generally speaking, a loan modification refers to the restructuring of a loan that cannot currently be afforded by the borrower. In a home mortgage loan modification, the concept of loan modification applied to a loan created for a mortgage. Usually, this type of loan modification is actually the most common, especially in the United States. When a homeowner is facing threat of foreclosure, they are presented with several options, loan modification being one of the most common. A home mortgage loan modification can be performed at the expense of either the current lender or another servicer. In some cases, the current lender would benefit from making a loan modification because a foreclosure is more of a burden, but even so, it is the borrowers responsibility to request it. Types of home mortgage loan modification include refinancing, skipping payments, reducing principle, or changing the interest rate in the borrower's favor.