Four days before the celebration, the Palisades fire destroyed the house. The couple packed what they could, put their children in the car and left California for Tennessee, where they moved in with family because they had nowhere else to go.

Their home was gone. So was their older son’s preschool, along with the library, restaurants and everyday places that had anchored their family’s life. What remained was a mortgage on a property that no longer existed — and a rebuilding process they say experts have told them could take at least two to four years.

Jonas and Fagnani, who later co-founded Disaster Mortgage Relief, are now among the California fire survivors urging lawmakers to extend mortgage protections for homeowners whose properties were destroyed in major wildfires.

The couple’s advocacy centers on Assembly Bill 1847, a proposal that would expand and strengthen protections created under last year’s emergency fire mortgage relief law, AB 238. That earlier law gave homeowners whose properties burned up to 12 months of mortgage forbearance.

Jonas and Fagnani argue that one year is not enough for families trying to rebuild in areas such as Pacific Palisades and Altadena, where fire recovery has been slowed by debris removal, utility restoration, insurance disputes, permit approvals, contractor shortages and rising construction costs.

Through Disaster Mortgage Relief, the couple says they have heard from hundreds of families trying to understand what mortgage servicers are required to do, how forbearance affects credit and what happens when the relief period ends.

As those forbearance periods begin expiring, they say some homeowners who were current on their loans before the January 2025 fire are seeing steep drops in their credit scores. Others are facing the possibility of foreclosure or large balloon payments, in some cases exceeding $100,000, while they are still trying to finance construction.

The California Bankers Association has raised concerns that AB 1847 could restrict access to credit. Jonas and Fagnani say they understand lenders need stability and clear rules, but argue that the larger risk is a wave of borrower defaults, damaged credit and stalled rebuilding in fire-damaged neighborhoods.

Supporters of the measure say the bill would not erase mortgage debt or eliminate lender rights. Instead, it would allow payments to be deferred during the rebuilding period and moved to the end of the loan.

Jonas and Fagnani point to the federal CARES Act during the COVID-19 pandemic, which provided up to 360 days of relief for borrowers with federally backed mortgages, as an example of a large-scale forbearance system that was workable.

For families who lost homes, they say, the ability to redirect two or three years of principal and interest payments toward construction could determine whether they rebuild or leave their communities permanently.

The couple remains in Tennessee and says they are trying to save enough money to rebuild the home they lost.

Their message to lawmakers is that California’s mortgage and disaster recovery systems must reflect the reality of modern wildfires: entire neighborhoods can be destroyed at once, and families can be displaced for years before they are able to return.

Original source: CalMatters

The post Our house burned down but our mortgage didn’t. California fire survivors need time appeared first on The Hemet & San Jacinto Chronicle.

Alicia Doyle | Contributed

As many people continue to struggle financially in the pandemic, programs in California are offering assistance to help homeowners who are behind on their mortgage payments, as well as renters who are falling behind. Learn more about these programs and how they can help.

California Mortgage Relief Program

The California Mortgage Relief Program is a state program created to help qualified homeowners who are behind on their mortgage payments because they were financially impacted by the COVID-19 pandemic.

The program uses federal Homeowner Assistance Funds to provide a one-time grant of up to $80,000 per household to help qualifying homeowners get caught up on their payments.

The grants are directly tied to the past due amount the homeowner owes their lender and funds are directly sent to the homeowner’s lender or mortgage servicer. The assistance provided through this program is not a loan and does not need to be paid back.

Homeowners who want to tap into the California Mortgage Relief Program should do the following:

1. Check to see if they are eligible to apply for the California Mortgage Relief Program by visiting camortgage relief.org and clicking the “Apply Here” button. Homeowners who meet the pre-screening criteria may complete an application for funding.

2. If a homeowner has questions about the application, they can call (888) 840-2594 for help. Housing counselors can also provide assistance and help homeowners review any other available options. Homeowners can find a local HUD-certified housing counselor at (800) 569-4287.

3. Once an application is approved, funds will be sent directly to the mortgage servicer to catch the homeowner up on all past due payments.

Applicants must meet all of the following criteria:

• Household income at or below 100% of their county’s area median income.

• Missed at least two mortgage payments prior to Dec. 27, 2021.

• Own a single-family home, condo or permanently affixed manufactured home.

• And, faced a pandemic-related financial hardship after Jan. 21, 2020.

• In addition, applicants must meet one of the following criteria:

• Receiving public assistance.

• Severely housing burdened (costs for your mortgage, property taxes and other housing expenses are more than 40% of your income).

This is a new program and it is important for homeowners to understand some of the key criteria. For one, the program is open to all eligible Californians who are currently experiencing pandemic-related hardships and have fallen behind on their housing payments.

California COVID-19 Rent Relief

Eligible households with rent — both for past due and future payments — can be helped through the California COVID-19 Rent Relief program.

Landlords and renters can apply online at housing.ca.gov.

For unpaid rent, landlords who participate in the program can get reimbursed for an eligible renter’s unpaid rent; and eligible renters whose landlords choose not to participate in the program may apply on their own and receive assistance for unpaid rent.

Eligible renters can also receive financial assistance for unpaid utility payments, which will be compensated at 100% of cost and paid directly to the utility provider. Some restrictions apply.

Renters can apply if they have been impacted by COVID-19, are income eligible, have unpaid rent or utilities, or need assistance with future rent or utilities. Landlords can apply for the program if they have renters who are behind on their rent and need financial assistance to support this income loss as long as:

• The renter’s household is income eligible, which the state will calculate when they apply.

• All payments you receive must be used to satisfy the renter’s unpaid rent. Eligible time frame for financial

• Or, have no alternative mortgage workout options (loan modifications) through your mortgage servicer.

More information regarding eligibility can be found at camortgagerelief.org/who-is-eligible.

Homeowners who fell behind on their mortgage last year due to a pandemic-related hardship could be eligible to get caught up on payments and the funds do not have to be repaid. The program is funded through the federal government’s Homeowner Assistance Fund. While there is no deadline to apply, applicants are encouraged to apply as early as possible.

• The renters takes steps to verify that they meet eligibility requirements and sign the application. They will be notified once your application submitted and asked to submit their required information.

It’s important to note the paperwork required for both renters and landlords.

Renters need one of the following: 2020 tax return; 2020 W2 and 1099G if you were unemployed; current pay stubs; or proof of participation in a state or federal subsidy program, such as CalFresh or CalWORKS.

Renters applying for assistance with utility bills must provide invoices or statements for any unpaid utility, water, trash and internet bills after April 1, 2020.

Required paperwork from landlords includes the lease or rental agreement reflecting renter’s name, residence address and monthly rent due; a rent ledger or rent statement showing the balance of unpaid rent from April 1, 2020; and a W-8 or W-9 for tax purposes.

Those without all the paperwork required can still apply, because most of the information can be certified in the application with proof of identification.

For more information about the California COVID-19 Rent Relief program, call (833) 430-2122; or to schedule an appointment with an organization in your area, call (833) 687-0967.

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