What Happens to Your Mortgage After a Wildfire?

If your home was damaged or destroyed in the Palisades or Eaton wildfires, you’re likely facing the harsh reality that your mortgage payments don’t stop, even after such a devastating loss.

In addition to the mortgage, a significant portion of your property tax may still be due. While some relief is available for fire victims, it comes with limitations.

Reduced assessment and your property taxes; However, this reduction applies only to the structure itself—not the land. In Southern California, where land often holds the majority of a property’s value, this distinction is critical. On average, two-thirds of a property’s assessed value in wildfire zones is tied to the land rather than the home.

To ease the financial burden, register for Misfortune and Calamity Tax Relief through the assessor’s website. This program can help adjust tax assessments and offer some relief.

What About Your Mortgage?

Unfortunately, losing your home to a wildfire doesn’t absolve you of your mortgage obligations. However, there are options to explore. Fire victims should contact their mortgage servicer as soon as possible to discuss temporary relief options. Many lenders are willing to offer deferred payment schedules, which can postpone payments for several months or even years.

Next Steps

If you’re a wildfire victim, consider these steps to manage your financial obligations:

  1. File for Tax Relief: Visit the Los Angeles County Assessor’s website to apply for Misfortune and Calamity Tax Relief.

  2. Contact Your Mortgage Servicer: Discuss options for deferring payments or restructuring your loan.

  3. Review Insurance Coverage: Ensure you’re receiving the full benefits of your homeowner’s insurance policy to help with rebuilding or temporary housing costs.

While the financial realities of recovering from a wildfire can be overwhelming, taking proactive steps can help ease the burden and set the stage for rebuilding.