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5 big banks have cut loan balances by $6.3B

By ALEX VEIGA

AP Real Estate Writer

LOS ANGELES (AP) – Five of the biggest U.S. banks cut struggling homeowners’ mortgage balances by $6.3 billion and provided a total $26.1 billion in relief under a landmark settlement over foreclosure abuses.

The monitor overseeing the $25 billion settlement says that the lenders provided the relief between March 1 and Sept. 30, to more than 300,000 borrowers.

In his second progress report, Joseph Smith discloses that $13.1 billion of the $26.1 billion in relief was in the form of short sales, in which lenders agree to accept less than what the seller owes on the mortgage.

Another $1.4 billion in relief was provided by refinancing home loans.

The settlement between the banks, the federal government and 49 states dates back to February.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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