Relief is Available for Property Owners Impacted by the 2025 Eaton and Palisades Wildfires
On January 7, 2025, Governor Newsom declared a State of Emergency due to the Eaton and Palisades wildfires and related windstorm conditions. Shortly thereafter, the Governor announced an agreement between banks and mortgage companies to temporarily pause or delay mortgage payments for property owners impacted by these wildfires. On September 22, 2025, Governor Newsom signed into law Assembly Bill (AB) 238, also known as the Mortgage Forbearance Act (the Act), which extends forbearance periods up to one year, granted in 90-day increments. Borrowers must submit a request for forbearance before the state of emergency ends (plus six months) or January 7, 2027, whichever comes first.
Please contact one of our foreclosure prevention counselors at (800) 593-8222 or email us at fphelp@dcba.lacounty.gov, to help review your eligibility or explore other foreclosure avoidance options.
Frequently Asked Questions
A borrower may qualify if:
- They own a single-family home with one to four units;
- They were not in default prior to January 7, 2025; and
- They can certify that their financial hardship was caused by the wildfires
If your lender approves you for forbearance under the Act, your lender is prohibited from assessing late fees.
If your lender approves you for forbearance under the Act, your lender is prohibited from reporting any missed payments during the forbearance period. However, they may continue to report missed payments prior to January 7, 2025. If you catch up on payments during the forbearance, the servicer must then report your account as current.
If you were granted forbearance under the Act, lenders are prohibited from requiring a lump-sum payment at the completion of the forbearance period. Furthermore, your lender may review you for available loss mitigation options, such as a repayment plan or a loan modification. Your lender must also notify you at least 30 days before the end of the forbearance period about what steps are required if you wish to extend it.
If your lender approves you for forbearance under the Act, your lender is prohibited from initiating foreclosure proceedings during the forbearance period.
The lender must issue an approval or denial of the forbearance request within 10 business days. If your forbearance request was denied, the lender is required to provide a written response stating the specific reason for the denial. The notice must include the specific investor guideline or contract provision that prevents approval.
If the denial is due to a curable defect, including an incomplete application or missing information, the notice should identify what needs to be fixed and provide at least 21 calendar days to correct the issue. Please contact one of our Foreclosure Prevention Counselors at (800) 593-8222 to assist you with your denial.
You still may have options if your home was in foreclosure prior to January 7, 2025. Please contact one of our foreclosure prevention counselors at (800) 593-8222 to explore foreclosure avoidance options that may be available with your lender.
Note: These new protections apply only if you qualify under the Act. Lender participation may vary depending on your loan type. Speaking with a foreclosure prevention counselor can help you understand your rights and available options.
