U.S. banks cut mortgages by $6.3B in homeowner settlement | The Tennessean | tennessean.com

Less than a year after a landmark foreclosure abuse settlement, five of the nation’s biggest banks have cut struggling homeowner’s mortgages by $6.3 billion, part of a total $26.1 billion in home loan relief the banks agreed to provide.

In Tennessee, roughly $85 million worth of relief has been provided for 2,134 borrowers between March 1 and Sept. 30, according to a report issued Monday by Joseph Smith, monitor of the settlement. Additionally, $51 million in loan modification trials are in progress.

More than $37 million in local relief came in the form of short sales, in which lenders agree to accept less than what the seller owes on the mortgage. About $18 million was provided through refinancing loans.

Read more: U.S. banks cut mortgages by $6.3B in homeowner settlement | The Tennessean | tennessean.com