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.