Essential Guidance for Los Angeles Homeowners Facing Mortgage Challenges After Wildfires
Experiencing the loss of your home or livelihood in the aftermath of a disaster is a heartbreaking reality for many Los Angeles residents. For those facing additional challenges like foreclosure, understanding your rights and accessing available support is crucial. Recent legislative changes, such as California’s AB 2424, which enhances foreclosure protections and ensures fair treatment for homeowners, and a variety of local legal aid resources, offer new opportunities for relief and recovery.
Mortgage Payment Considerations for Fire Victims
While navigating disaster recovery, continuing to make your mortgage payments, if possible, is critical to avoiding foreclosure. Missing payments can escalate financial strain, so start exploring these options right away before payments get away from you:
- Contact Your Lender: Reach out to your mortgage servicer as soon as possible. Many banks and financial institutions offer disaster relief options, such as forbearance or deferred payment plans, to help you stay on track.
- Explore Temporary Payment Suspensions: Some banks in Los Angeles and surrounding areas may suspend mortgage payments for fire victims. Programs vary, so ask your lender about specific relief measures available for disaster-affected homeowners.
- Document Your Situation: Provide your lender with any documentation of fire-related damages or financial hardships to expedite assistance.
- Familiarize Yourself with AB 2424 Protections: Even if payments are missed, the postponement and fair market value provisions under AB 2424 can provide additional time and safeguard your property from being undervalued.
Mortgage Department Hotlines for Fire Victims
In light of the recent Los Angeles wildfires, several financial institutions have established dedicated hotlines and support services to assist affected homeowners with mortgage-related concerns. Here are examples of some resources you can reach out to:
JPMorgan Chase Disaster Assistance
- Phone: 1-800-848-9136
- Services: Offers disaster forbearance, allowing affected borrowers to temporarily pause or reduce their loan repayments. Contact their customer service for personalized assistance.
California Credit Union Loan Solutions Department
- Phone: 1-800-334-8788
- Services: Provides payment assistance and guidance for existing mortgage holders impacted by the wildfires. Reach out for support tailored to your situation.
Hanmi Bank Customer Call Center
- Phone: 1-855-773-8778
- Services: Offers assistance to clients affected by the wildfires, including guidance on mortgage concerns and available relief options. Contact them for more information.
AltaOne Federal Credit Union Emergency Member Assistance Program
- Phone: 1-800-433-9727
- Services: Supports members in wildfire-affected areas with various financial relief options, including assistance with mortgage payments. Contact them to learn more.
If your mortgage lender isn’t listed above, it’s advisable to contact their customer service department directly. Many banks have disaster relief protocols in place and can provide guidance tailored to your circumstances.
Additionally, the Federal Emergency Management Agency (FEMA) offers disaster assistance to individuals affected by the wildfires. You can apply for aid online at disasterassistance.gov or by calling the FEMA Helpline at 800-621-3362.
For the latest updates on Disaster Recovery Centers, you can text “DRC” along with your ZIP Code to 43362 or visit fema.gov.
FEMA has also established Disaster Recovery Centers (DRCs) in Los Angeles County to provide in-person support for wildfire victims:
- UCLA Research Park: 10850 W Pico Blvd, Los Angeles, CA. Open daily from 9:00 AM to 8:00 PM.
- Pasadena City College Community Education Center: 3035 E Foothill Blvd, Pasadena, CA. Open daily from 9:00 AM to 8:00 PM.
These centers offer assistance with FEMA applications, housing and rental support, and access to various recovery services.
Please note that temporary FEMA assistance sessions held at the following Los Angeles County libraries have closed as of January 13, 2025:
- La Crescenta Library: 2809 Foothill Blvd, La Crescenta, CA 91214
- La Cañada Flintridge Library: 4545 N Oakwood Ave, La Cañada Flintridge, CA 91011
- West Hollywood Library: 625 N San Vicente Blvd, West Hollywood, CA 90069
- San Fernando Library: 217 N Maclay Ave, San Fernando, CA 91340
- Live Oak Library: 22 W Live Oak Ave, Arcadia, CA 91007
- Temple City Library: 5939 Golden West Ave, Temple City, CA 91780
- San Gabriel Library: 500 S Del Mar Ave, San Gabriel, CA 91776
For ongoing assistance, please visit one of the active Disaster Recovery Centers or contact FEMA directly via the options provided above.
Additional Federal and Local Mortgage Assistance Programs
HUD Disaster Relief Options for FHA Homeowners
The U.S. Department of Housing and Urban Development (HUD) offers mortgage relief for those whose homes or ability to make mortgage payments have been impacted by a presidentially declared disaster. This includes a 90-day moratorium on foreclosures for Federal Housing Administration (FHA)-insured home mortgages.
According to a HUD press release, some provisions of the HUD disaster relief program are:
- Making mortgage insurance available – When homes are destroyed or damaged to an extent that required reconstruction or complete replacement, HUD’s Section 203(h) program provides FHA insurance to disaster victims. Borrowers from participating FHA approved lenders are eligible for 100 percent financing including closing costs.
- Making insurance available for both mortgage and home rehabilitation – HUD’s Section 203(k) loan program also allows individuals to finance the purchase or refinance of a house along with its repair through a single mortgage. Homeowners can also finance the rehabilitation of their existing homes if damaged.
- Sharing information on housing providers and HUD programs – Information will be shared with FEMA and the State on housing providers that may have available units in the impacted counties, including Public Housing Agencies and Multi-Family owners. The Department will also connect FEMA and the State to subject matter experts to provide information on HUD programs and providers.
Eligible Participants:
FHA approved lending institutions, such as banks, mortgage companies, and savings and loan associations, are eligible for Section 203(h) insurance.
Eligible Customers:
Anyone whose home has been destroyed or severely damaged in a Presidentially-Declared Major Disaster Area is eligible to apply for mortgage insurance under this program.
Application:
The borrower’s application for mortgage insurance must be submitted to the lender within one year of the President’s declaration of the disaster. Applications are made through an FHA approved lending institution, who make their requests through a provision known as “Direct Endorsement,” which authorizes them to consider applications without submitting paperwork to HUD. Mortgage insurance processing and administration for this and other FHA single family mortgage insurance products are handled through HUD’s Homeownership Centers.
Technical Guidance:
This program is authorized under Section 203, National Housing Act (12 U.S.C. 1709, 1715(b)). Program regulations are in 24 CFR Part 203. These regulations, as well as handbooks, notices, and letters relevant to this program, are available through HUDCLIPS. The program is administered by the Office of Single Family Housing in HUD’s Office of Housing, Federal Housing Administration.
Homeowners can contact their mortgage servicer or the FHA Resource Center at 1-800-304-9320 or email [email protected]
People should look at the Disaster Payment Deferral and the Fannie Mae Flex Modification.
VA Home Loans
The U.S. Department of Veterans Affairs (VA) offers home loan guaranty benefits and other housing-related programs to help veterans, service members, and eligible surviving spouses buy, build, repair, retain, or adapt a home for personal occupancy. In disaster situations, the VA encourages loan servicers to extend forbearance to borrowers in distress and provides guidance on loan modifications and other assistance. (benefits.va.gov)
SPECIAL NOTE: We researched the USDA disaster program and Los Angeles fire survivors are not located within eligible areas.
Veterans-Specific Resources
VA Disaster Assistance
The VA provides resources to help veterans continue to receive benefits and health care after a disaster. This includes information on housing assistance, debt management, and other support services. (va.gov)
National Call Center for Homeless Veterans
Veterans experiencing homelessness or at risk of homelessness due to a disaster can call 1-877-4AID VET (1-877-424-3838) for assistance with housing options and other support. (va.gov)
How AB 2424 Can Help You
California Assembly Bill 2424, enacted to strengthen foreclosure protections, is a lifeline for homeowners facing financial challenges due to disasters. It was specifically designed to give vulnerable homeowners more time and fairer conditions to navigate the complex foreclosure process.
What is AB 2424? This bill enhances foreclosure protections by introducing key safeguards, such as postponement opportunities and fair market value requirements, ensuring that homeowners aren’t exploited during challenging times. For wildfire victims, this law offers additional time to secure their financial footing and explore their options.
Why AB 2424 Matters for Fire Victims Fire victims often face sudden financial burdens, from repair costs to loss of income. AB 2424 addresses these challenges by giving homeowners critical time extensions and fairer terms during the foreclosure process. It allows them to regain stability and retain as much equity as possible if they decide to sell.
Important Context: AB 2424 becomes a viable solution specifically when a homeowner has fallen into a Notice of Default due to missed mortgage payments. It provides a structured framework for borrowers to gain extra time to rectify their financial standing or arrange alternative plans, like a sale or refinance.
How Can AB 2424 Help Fire Victims?
- The law provides foreclosure postponements, allowing homeowners extra time to sell or refinance their properties.
- It ensures properties are not sold for below-market value, preserving homeowner equity.
- Trusted third parties, like family members or counselors, can receive foreclosure notices to help manage the process and reduce stress.
California Assembly Bill 2424, enacted to strengthen foreclosure protections, is a lifeline for homeowners facing financial challenges due to disasters. It was specifically designed to give vulnerable homeowners more time and fairer conditions to navigate the complex foreclosure process.
What is AB 2424? This bill enhances foreclosure protections by introducing key safeguards, such as postponement opportunities and fair market value requirements, ensuring that homeowners aren’t exploited during challenging times. For wildfire victims, this law offers additional time to secure their financial footing and explore their options.
Why AB 2424 Matters for Fire Victims Fire victims often face sudden financial burdens, from repair costs to loss of income. AB 2424 addresses these challenges by giving homeowners critical time extensions and fairer terms during the foreclosure process. It allows them to regain stability and retain as much equity as possible if they decide to sell.
How Can AB 2424 Help Fire Victims?
- The law provides foreclosure postponements, allowing homeowners extra time to sell or refinance their properties.
- It ensures properties are not sold for below-market value, preserving homeowner equity.
- Trusted third parties, like family members or counselors, can receive foreclosure notices to help manage the process and reduce stress.
California Assembly Bill 2424 introduces critical safeguards for homeowners at risk of foreclosure. Here’s how it works:
- Third-Party Notification: You can authorize a trusted individual, such as a family member, housing counselor, or attorney, to receive foreclosure-related notices on your behalf. This ensures you have additional support in managing important deadlines and decisions.
- Foreclosure Postponements:
- If you’re planning to sell your property, providing a listing agreement at least five business days before the foreclosure sale date will delay the sale by 45 days.
- Submitting a purchase agreement before the rescheduled sale adds another 45-day extension, giving you time to finalize the transaction and avoid foreclosure.
- Fair Market Value Protection: Properties cannot be sold for less than 67% of their assessed fair market value at the initial foreclosure sale. This prevents undervaluation of disaster-damaged homes and gives homeowners a better chance of preserving equity. We can help by providing no-cost, no-obligation property valuations. Click HERE to get started.
Legal Aid Resources in Los Angeles
Navigating foreclosure and property valuation disputes can feel overwhelming. Thankfully, several legal organizations in Los Angeles are ready to help, often at little or no cost:
Legal Aid Foundation of Los Angeles (LAFLA)
- Website: LAFLA.org
- Services: Foreclosure prevention counseling, legal representation, and education on homeowners’ rights.
Bet Tzedek Legal Services
- Website: BetTzedek.org
- Services: Free legal support for foreclosure prevention, property disputes, and reverse mortgage issues.
Public Counsel’s Foreclosure Prevention Project
- Website: PublicCounsel.org
- Services: Workshops, one-on-one legal aid, and advocacy for homeowners facing foreclosure.
These organizations specialize in assisting vulnerable populations and can provide guidance tailored to your situation.
Steps You Can Take Today
If you’re a fire victim concerned about foreclosure, here are immediate steps to consider:
- Contact Legal Aid: Reach out to one of the organizations listed above to schedule a consultation. They can help you understand how AB 2424 applies to your situation.
- Activate Third-Party Notifications: Designate a trusted individual or counselor to receive foreclosure notices, ensuring you don’t miss any critical updates.
- Leverage Foreclosure Postponement Provisions: If selling your home is an option, start the process as early as possible to utilize AB 2424’s 45-day extensions.
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Request a Fair Market Value Assessment: Ensure your property’s value is accurately assessed to avoid being undervalued in a foreclosure sale.
- Explore Disaster Relief Programs: In addition to AB 2424, apply for FEMA assistance, state disaster relief grants, or private funds to address immediate financial needs.
Local Nonprofits Offering Mortgage Assistance
California Fire Foundation
This nonprofit organization provides critical support to communities affected by wildfires, including financial assistance to individuals and families. (cafirefoundation.org)
Los Angeles Housing Services Authority (LAHSA)
LAHSA offers resources to support those affected by the L.A. fires, including information on housing assistance and other supportive services. (lahsa.org)
You’re Not Alone
Recovering from a disaster is a journey, and the challenges of foreclosure can feel isolating. Remember that resources and compassionate professionals are here to support you. By taking advantage of AB 2424’s protections and connecting with local legal aid services, you can find the guidance and relief needed to move forward.
For more personalized assistance, don’t hesitate to reach out to any of the organizations listed above. You deserve the chance to rebuild with dignity and security.