Hey there! If you’re reading this, chances are you or someone you know has been hit hard by wildfires in 2025. It’s tough—losing your home or facing damage from a natural disaster is overwhelming enough without worrying about mortgage payments piling up.
But here’s the good news: there are mortgage relief programs out there designed to help wildfire victims like you breathe a little easier. In this blog, we’ll walk you through what’s available in 2025, how it works, and how you can get started. Let’s dive in!
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Why Mortgage Relief Matters for Wildfire Victims
Wildfires don’t just destroy homes—they disrupt lives. Imagine this: your house is damaged or gone, you’re displaced, and yet those mortgage bills keep coming. It’s a lot to handle. That’s where mortgage relief steps in.
These programs are like a lifeline, offering temporary breaks or adjustments so you can focus on rebuilding without the added stress of foreclosure looming over you.
In 2025, wildfires have already left a mark, especially in places like Los Angeles County. The good news? Governments, banks, and agencies are stepping up to help. Whether it’s pausing payments or getting financial aid, there’s support out there. Let’s break it down.
What Are Mortgage Relief Programs?
So, what exactly are we talking about? Mortgage relief programs are initiatives that help homeowners manage their mortgage when disaster strikes. They can include things like:
- Forbearance: A temporary pause or reduction in your mortgage payments.
- Loan Modifications: Changes to your loan terms to make payments more affordable long-term.
- Grants or Assistance Funds: Direct financial help to cover mortgage costs.
These programs are often backed by federal or state governments, banks, or even nonprofit groups. In 2025, wildfire victims have a mix of options to explore, from state-led efforts in California to federal support through agencies like FEMA or HUD.
Mortgage Relief in 2025: What’s Happening Now?
It’s February 20, 2025, and the wildfire recovery conversation is heating up (no pun intended). Let’s look at some of the big moves being made to support victims this year.
California’s Push for Relief
California has been hit hard by wildfires, and Governor Gavin Newsom is leading the charge to help. Just yesterday, on February 19, 2025, he announced a proposal for a $125 million mortgage relief program. Here’s the scoop:
- Funding Breakdown:
- Over $100 million for direct mortgage assistance.
- $25 million to extend mortgage counseling services.
- Who’s Eligible? Homeowners whose homes were severely damaged or destroyed in declared disasters since January 1, 2023, including the recent Palisades and Eaton Fires.
- How It’s Paid For: The money comes from settlement funds from big banks—no impact on the state’s 2025-2026 budget.
This program, if approved today by the California Housing Finance Agency (CalHFA), could be a game-changer. It’s designed to keep wildfire victims from losing their homes to foreclosure while they recover.
Bank and Lender Commitments
Banks are jumping in too. In January 2025, Governor Newsom announced deals with major lenders like Bank of America, Citi, JPMorgan Chase, U.S. Bank, and Wells Fargo. Later, 270 state-chartered banks and credit unions joined the effort. What are they offering?
- 90-Day Forbearance: A three-month break on mortgage payments, no late fees, and no credit reporting hits.
- Extra Relief Options: Some banks extend forbearance up to 12 months or offer foreclosure pauses for 60-90 days.
You’ll need to contact your mortgage servicer to get this rolling, but it’s a solid start for immediate relief.
Federal Support: Fannie, Freddie, and More
If your mortgage is backed by Fannie Mae or Freddie Mac (common for many homeowners), you’re in luck. Both rolled out disaster relief in January 2025:
- Up to 12 Months Forbearance: Payments can be paused or reduced for a year—no late fees or foreclosure threats.
- Post-Forbearance Help: Options like repayment plans or loan modifications to ease you back into payments.
The U.S. Department of Housing and Urban Development (HUD) also offers up to 12 months of forbearance for FHA-backed loans. Plus, there’s the 203(h) program—a zero-down loan to rebuild or buy a new home if yours was destroyed.
How Do These Programs Work?
Okay, so how do you actually use these? Let’s keep it simple.
Step 1: Contact Your Mortgage Servicer
Your servicer is the company you send your mortgage payments to. Call them ASAP after a wildfire hits. They’ll tell you what relief they’re offering—whether it’s a bank-specific deal or something tied to Fannie Mae or HUD.
Step 2: Gather Basic Info
You don’t need a mountain of paperwork for initial relief. For example, the bank deals in California promise a “streamlined process”—no forms required upfront. But have these ready just in case:
- Your loan number.
- Proof of damage (photos or an insurance claim helps).
- A quick explanation of your situation.
Step 3: Pick Your Relief Option
Here’s a small table to show what you might choose:
| Option | What It Does | How Long It Lasts |
|---|---|---|
| Forbearance | Pauses or reduces payments | 90 days to 12 months |
| Loan Modification | Adjusts loan terms (e.g., lower rate) | Long-term |
| Direct Assistance | Covers payments with grants | Varies by program |
Step 4: Plan for After Relief
Forbearance isn’t forgiveness—missed payments often get tacked onto the end of your loan or spread out. Talk to your servicer about what happens when the relief ends.
Spotlight: California’s $125 Million Proposal
Let’s zoom in on Newsom’s latest plan, since it’s fresh news. If it gets the green light today, here’s what wildfire victims can expect:
- Direct Help: The $100 million+ would pay mortgage bills for those at risk of foreclosure due to fire damage since 2023.
- Counseling Boost: The $25 million extends a program that guides you through FEMA aid, insurance claims, and recovery steps.
- Big Reach: It covers not just LA fires but also disasters like the Park Fire and Franklin Fire.
This isn’t a done deal yet—it’s up for review today, February 20, 2025. If approved, more eligibility details will follow soon.
Other Ways to Get Help
Not in California or need more options? Here’s what else is out there:
FEMA Assistance
The Federal Emergency Management Agency (FEMA) isn’t just for emergency supplies. They can help with:
- Rental assistance if you’re displaced.
- Basic home repairs.
- Personal property replacement.
Apply at DisasterAssistance.gov or call 1-800-621-3362. Deadlines for LA County wildfire aid are March 10, 2025.
Nonprofit Support
Groups like the California Fire Foundation are raising funds too. They’ve distributed cash cards to wildfire victims and offer grants for long-term recovery. Check their site for donation drives or aid applications.
Assembly Bill 238
This bill, introduced in January 2025, pushes for up to a year of mortgage relief in LA County. It’s stricter than bank deals—180 days of paused payments with no fees, extendable another 180 days. It’s still moving through the legislature, but it could set a new standard if passed.
Pros and Cons of Mortgage Relief
Let’s weigh the good and the not-so-good.
Pros
- Immediate Relief: You get breathing room to focus on recovery.
- No Credit Hit: Most programs (like the bank deals) won’t report missed payments.
- Flexible Options: From 90 days to a year, you can pick what fits.
Cons
- Payments Still Due Later: Forbearance delays, not cancels, payments.
- Eligibility Limits: Some programs are ZIP-code specific or tied to certain loans.
- Processing Time: Applying can take effort, especially with overwhelmed servicers post-disaster.
Real-Life Example: How It Might Work
Picture this: Sarah’s home in Altadena burned down in the Eaton Fire. She owes $2,000 monthly on her mortgage, backed by Freddie Mac. Here’s what she does:
- Calls her servicer and gets a 12-month forbearance—no payments for a year.
- Applies for FEMA aid to cover rent while displaced.
- Checks if she qualifies for Newsom’s $125 million program once details drop.
- After a year, opts for a loan modification to lower her payments.
Sarah avoids foreclosure and gets time to rebuild. It’s not perfect—interest still accrues—but it’s manageable.
Tips for Navigating Relief Programs
Ready to take action? Here are some pointers:
- Act Fast: Contact your servicer right after the disaster—delays can complicate things.
- Ask Questions: Clarify what happens post-forbearance (balloon payments? extended terms?).
- Document Everything: Keep records of calls, approvals, and damage proof.
- Seek Counseling: HUD-approved agencies or CalHFA’s program can guide you for free.
FAQs: Mortgage Relief Programs for Wildfire Victims 2025
Got questions? We’ve got answers.
Do I still owe my mortgage if my house burned down?
Yes, you do—unless your insurance pays it off completely. Relief programs can pause payments, but the debt remains until settled.
How long can I pause payments with forbearance?
It depends—bank deals start at 90 days, while Fannie Mae, Freddie Mac, and HUD offer up to 12 months.
Will relief hurt my credit score?
Not usually. Most 2025 programs (like California’s bank agreements) promise no credit reporting for missed payments during forbearance.
What if my lender isn’t part of these programs?
Check with HUD or FEMA for federal options, or ask your servicer about in-house relief—they might still help.
Wrapping Up: You’ve Got Options
Wildfires are brutal, but you’re not alone in this. From California’s $125 million proposal to bank forbearance and federal aid, 2025 offers real support for wildfire victims. Start by calling your mortgage servicer, explore state and federal programs, and don’t hesitate to lean on counseling services. Recovery takes time, but these relief options can lighten the load.
Disclaimer: This blog is for informational purposes only and isn’t financial or legal advice. Programs and eligibility can change, so always check with your mortgage servicer, state agencies, or a professional advisor for the latest details tailored to your situation. Stay safe and take care.
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