LA Homeowners Affected by Wildfires Still Responsible for Mortgages and Taxes

Despite losing their homes, LA residents must continue paying mortgages and property taxes

LA Homeowners Affected by Wildfires Still Responsible for Mortgages and Taxes
LA Homeowners Affected by Wildfires Still Responsible for Mortgages and Taxes

Los Angeles: The wildfires have been wreaking havoc in the area for weeks. Homeowners are understandably anxious about their mortgages after losing their homes. Thankfully, Fannie Mae and Freddie Mac have stepped in to help. They announced mortgage assistance options for those affected by the fires.

These options include a 12-month forbearance plan. This means homeowners can reduce or even pause their mortgage payments for a year without worrying about late fees or foreclosure. If someone hasn’t contacted their lender yet, they can still get a three-month forbearance if their home was impacted.

Cyndi Danko from Fannie Mae emphasized the importance of reaching out for help. Even after the forbearance ends, homeowners can look into repayment plans or loan modifications to avoid falling behind.

While some private lenders are also offering assistance, the tough news is that homeowners still have to pay their mortgages and property taxes, even if their homes are gone. In many cases, property taxes are included in monthly mortgage payments, which can complicate things.

Los Angeles County Tax Assessor Jeff Prang mentioned that while home values may drop, the land itself can still hold significant value. If a homeowner’s property has over $10,000 in damages, they might qualify for tax relief by filing a claim within a year.

As the fires rage on, they’ve already claimed lives and destroyed thousands of structures. The winds are making it even harder for firefighters, but there’s hope that conditions will improve soon. Everyone is hoping for a break in the weather to help those brave firefighters battling the flames.

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