Short sales trump debt relief in national mortgage settlement

More borrowers lost their homes to short sales and deeds in lieu of foreclosure than received loan principal forgiveness in the latest accounting of banks’ progress to fulfilling the consumer relief obligations of a $25 billion national mortgage settlement.

Through Dec. 31, 2012, four of the five major banks have received credit for $5.4 billion worth of short sales and deeds in lieu, $4.1 billion in first lien principal forgiveness, and $2.6 billion in refinancings, among other efforts. Earlier this year, the banks claimed to have fulfilled all of their remaining obligations under the settlement, though this is in the process of being verified.

Source: Office of Mortgage Settlement Oversight