Individuals who are experiencing financial hardship that prevents them from making timely payments on a residential mortgage loan due directly to the Los Angeles County wildfire disaster may now apply to their mortgage servicer for up to one year in mortgage forbearance. This is a result of changes made by AB 238 (Ch. 25-128), which the Governor signed on September 22.
Taxpayers may apply for forbearance in 90-day increments, for up to one year in total. The one-year total includes any forbearance that a mortgage servicer may have already provided prior to AB 238’s enactment.
During the forbearance period, the mortgage servicer cannot charge late fees, nor a default rate of interest. Additionally, for borrowers who were current on their mortgage loan prior to entering into a forbearance agreement, the servicer cannot require a lump sum payment after the forbearance period ends.
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