Under some programs, homeowners who are unable to pay their current mortgages may be offered the option loan modification. Loan modification, which is generally funded through government programs, is a process that will be used to modify the terms of the loan to be different from how they originally has been set. A modification will generally change interest rates, extend length of loan, forgive principal, or otherwise modify the terms for the benefit of affordability. First, before, the homeowner will need to qualify before any program will accept to complete a loan modification. In qualifying for loan modification, income is one of the most major concerns, and in two ways. Concerning income, To qualify, a homeowner needs a hardship, which is often a loss of employment and income. This usually serves as an adequate reason for loan modification, but the homeowner will also need to prove that they will be able to afford the new loan also. If the homeowner no longer has an acceptable source of income, there's very little chance that a loan modification will be granted.