Tuesday, September 23, 2025

California Enacts Mortgage Relief for Los Angeles Fire Survivors

New law allows up to one year pause in payments without penalties

Gov. Gavin Newsom signed legislation Monday that provides mortgage payment relief for survivors of the Los Angeles fires.

The Mortgage Forbearance Act, authored by Pasadena representative Assemblymember John Harabedian, allows fire victims to pause mortgage payments for up to one year. Homeowners who enter forbearance will not face penalties or credit damage during the payment pause.

The law also prohibits lenders from demanding lump sum payments when the forbearance period ends.

Harabedian, a Pasadena Democrat, said fire survivors have struggled with dual housing costs.

“For months since the fires, survivors have been forced to make two housing payments: one for their temporary rental accommodations and another mortgage payment for a house that either doesn’t exist anymore or is uninhabitable due to smoke and ash damage,” Harabedian said.

The assemblymember said the new law will ease financial burdens by allowing families to pause mortgage payments while they rebuild.

After the fires, Harabedian worked with the governor to secure initial 90-day forbearance commitments from nearly 400 California lenders.

The legislation, designated as Assembly Bill 238, takes effect immediately.

Fire survivors who encounter problems with their mortgage servicers can contact the Department of Financial Protection and Innovation. The agency is responsible for enforcing the new law.

Harabedian’s district office is also available to assist constituents at (626) 351-1917.