Thursday, September 4, 2025

Homeowners to Benefit from New Mortgage Relief Legislation for Wildfire Survivors

New state bill targets local wildfire recovery

Altadena and Pasadena residents impacted by recent wildfires will soon receive substantial financial relief, thanks to the passage of Assembly Bill 238 (AB 238), also known as the Mortgage Forbearance Act. The bill, authored by Assemblymember John Harabedian—who represents Altadena and Pasadena in the California Legislature—was approved with an urgency clause and awaits the Governor’s signature to take effect immediately.

AB 238 specifically allows homeowners affected by wildfires in the Los Angeles region to pause mortgage payments for up to one year without facing penalties or damage to their credit scores. Importantly, lenders will be prohibited from requiring lump-sum repayments at the end of the forbearance period.

According to a statement from Assemblymember Harabedian, “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”. He added that the new legislation will ease the financial burden for families throughout Pasadena and surrounding communities.

Earlier, nearly 300 lenders statewide agreed to voluntary 90-day forbearance arrangements coordinated by Harabedian and the Governor’s office. AB 238 formally expands and strengthens these protections, ensuring long-term security for Pasadena’s wildfire survivors.

Harabedian serves California’s 41st Assembly District, which in addition to Altadena and Pasadena  encompasses La Cañada Flintridge, Sierra Madre, Claremont, and Rancho Cucamonga.