Monday, February 16, 2026

Bank of America Offers Altadena Fire Survivors Extended Mortgage Relief, Rebuild Financing

A three-part package preserves existing interest rates and adds a line of credit as the initial forbearance window nears expiration

Homeowners in Altadena who lost their homes in the Eaton Fire can now apply for up to two additional years of mortgage forbearance through Bank of America, on top of the 12 months required by state law — part of a financing package the bank says is designed to keep fire survivors in their communities while they rebuild.

The program, which Bank of America calls the “Rebuild Solution,” also includes a dedicated line of credit expected to launch this month to cover rebuilding costs that exceed insurance payouts, and a provision that preserves borrowers’ existing lower interest rates on their mortgages during reconstruction, according to the bank.

The package is available to “certain qualifying mortgage clients” who plan to rebuild, the bank said — a subset of the estimated 13,000 residential properties destroyed in the Eaton and Palisades fires in January 2025.

Bank of America estimates that about half of all wildfire survivors have some financial relationship with the bank, given what it describes as its 110-year history in Los Angeles.

The Rebuild Solution arrives as a critical deadline approaches.

Governor Gavin Newsom signed AB 238, authored by Assemblymember John Harabedian of Pasadena, in September, requiring lenders to offer up to 12 months of forbearance for wildfire-impacted borrowers. For homeowners who entered forbearance early in 2025, that 12-month window is now closing.

On February 5, Newsom announced that more than 160 lenders had committed to extend mortgage relief beyond the AB 238 requirement.

Bank of America’s extended forbearance goes further than the 90-day extensions offered by most other lenders under the February 2026 agreement, according to the DFPI, which states on its website that the bank is offering up to two additional years for those who plan to rebuild.

“This package of solutions helps preserve a homeowner’s cashflow through extended forbearance and protects their current lower interest rate while providing additional financing to bridge the gap between their insurance payout and today’s costs to rebuild,” said Raul Anaya, Bank of America’s head of local markets strategy and president of the bank’s Greater Los Angeles division. “It’s our hope that more Angelenos will opt to stay and rebuild knowing that these options may be available to them.”

Joy Chen, executive director of the Eaton Fire Survivors Network, endorsed the package.

“These are exactly the types of solutions that fire survivors need as we assess our ability to rebuild or not,” Chen said. “I commend Bank of America for listening to our needs and working with impacted homeowners and communities to develop resources like these.”

The bank has taken additional steps beyond the Rebuild Solution.

In December 2025, Bank of America announced $10 million in zero-interest loans to three community development financial institutions, including Genesis LA, which makes loans supporting homeownership and economic development in the Altadena and Pasadena areas. It also reported it had also distributed $3.5 million in philanthropic grants to local nonprofits for fire and business support as of that date.

Bank of America also said it plans to rebuild its destroyed financial centers in Altadena and Pacific Palisades.

Homeowners seeking more information can visit BankofAmerica.com/LARebuild.

Consumers who believe their mortgage servicer is not complying with the law or public commitments can file a complaint with the DFPI at dfpi.ca.gov.

The Rebuild Line of Credit, the second component of the package, is expected to become available in February 2026, according to an earlier bank’s announcement.