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Banks provided $272 million in mortgage relief in Sonoma County

More than 2,000 Sonoma County homeowners received reductions in their loan balances or were allowed to walk away from their mortgages in short sales under a 2012 mortgage settlement between lenders and the state of California, according to a new report.

Overall, banks wiped out $272 million in mortgage debt owed by Sonoma County homeowners, according to a report released today on the impact of the mortgage settlement with the nation's three largest home lenders.

The report, prepared by a UC Irvine law professor appointed to monitor the settlement, found that lenders provided $149.4 million in mortgage relief to Sonoma County borrowers by approving short sales between January 2012 and the end of June.

The banks erased an additional $122.6 million in debt by restructuring loans to reduce the principal, according to the report by California Monitor Katherine Porter. The average principal reduction for a first mortgage in Sonoma County was $129,487. For a second mortgage it was $90,807.

Napa County homeowners received a total of $98.8 million in relief, while those in Lake and Mendocino counties received $23.9 million and $14.6 million respectively.


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