Mortgage modification is a process that creates a newly structured loan when the homeowner can no longer pay. In most cases, mortgage modification is needed as the result of financial inability, most commonly taking place after the loss of employment or other significant hardship. When issues arise and the homeowner misses payments, the lender may choose to foreclose, beginning with a notice of default. Contained in the notice of default is a statement that the borrower is in default, the amount of arrears, and time preceding foreclosure. Upon receiving this notice, the homeowner can sometimes take advantage of many alternatives,mortgage modification being one of the most common. In doing this, various terms of the mortgage loan will be adjusted: interest rates, length of loan, required term to repay arrears, and principal may sometimes be forgiven as well. Ideally, modifications allowed by the new terms provided will make it possible for mortgage payments to continue, thereby ending the overwhelming process of foreclosure to end.