Real Estate
LA residents whose homes burnt down in wildfires will still have to pay off mortgages, property taxes
By Snejana Farberov
Published Jan. 16, 2025, 3:03 p.m. ET
As deadly wildfires continue scorching their way through Los Angeles and the surrounding area for the second straight week, homeowners are worried about the prospect of defaulting on their mortgages in the wake of the unprecedented disaster were offered some reprieve from the nation’s major lenders.
On Monday, Fannie Mae and Freddie Mac unveiled mortgage assistance and relief options for customers reeling from the historic Southern California fires.
Both government-backed corporations are offering 12-month forbearance plans, meaning that struggling homeowners could either reduce or suspend their mortgage payments for up to a year without incurring late fees, foreclosure, or other types of legal proceedings.
In cases where a homeowner has failed to reach out to their lender, mortgage servicers are authorized to offer a forbearance plan for up to three months if they believe the home was affected by a disaster.
“We are committed to supporting homeowners, renters, and communities in need during this challenging time,” said Cyndi Danko, Fannie Mae’s single-family senior vice president and chief credit officer, in a statement. “If homeowners have been impacted by the fires, we encourage them to call their mortgage servicer for assistance as soon as possible.”
Even after the forbearance period ends, homeowners can apply for a repayment plan, a payment deferral, or a loan modification to avoid mortgage delinquency, according to the companies.
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https://nypost.com/2025/01/16/real-estate/la-residents-whose-homes-burnt-down-in-wildfires-will-still-have-to-pay-off-mortgages-property-taxes/