As Southern Californians who were affected by the LA fires attempt to get their lives back together, there’s a question on mortgage holders’ minds: do they have to make their payments if their home was destroyed? There’s a lot of uncertainty about the next steps that Californians who suffered losses need to take, and you can find the answers about mortgage payments and other important considerations below.
What does the law say about mortgage payments after a home has burnt down?
Between the Eaton Fire and the Palisades Fire, which burned in Los Angeles County for more than a week, 12,000 structures were either damaged or destroyed and thousands of people were evacuated.
Homeowners who are impacted by a disaster are frequently eligible for reduced or paused mortgage payments for up to a year, according to the United States Federal National Mortgage Association (FNMA). To provide additional relief, homeowners will not incur late fees, foreclosures, or other legal proceedings during the temporary reduction or freeze on payments.
This is called a forbearance plan, and homeowners are urged to contact their mortgage providers so they can set one up if they haven’t already. The FNMA says that after the forbearance plan period has ended, there are a number of options for homeowners so that they are not under pressure to make up the missed payments in a lump sum.
Do property taxes have to be paid on homes burnt down in the LA fires?
Owners may be eligible for disaster tax relief through the Los Angeles County Assessor’s Office if their property was damaged or destroyed in the Los Angeles wildfires.
The Misfortune and Calamity Tax Relief program allows the current year’s property taxes to be deferred without incurring penalties.
Californians who suffered massive losses in the LA fires in January 2025 have another nightmare to deal with: trying to get insurance companies to pay their claims. Some insurers are less inclined to approve claims than others.
Are tenants liable to pay rent for premises destroyed or damaged by fire?
The L.A. County Department of Consumer and Business Affairs reports that rent does not have to be paid on properties that are completely destroyed in a disaster, and the rental agreement becomes void under California law. The department explains on its website:
“You are no longer required to pay rent and the landlord is no longer required to provide housing. The landlord must return any prepaid rent and refund the security deposit in accordance with California law.”
What about rent for properties only partially damaged?
Tenants have two options when it comes to rental units that are partially destroyed and aren’t habitable, according to the county Department of Consumer and Business Affairs.
- The tenant is allowed to end the rental agreement and vacate the property.
- The tenant may remain in the rental unit, but the landlord is responsible for repairs to ensure the space is livable.
What’s the law for rental premises that are only slightly damaged?
If the rental property suffers minor damage in a disaster like a fire and its habitability is not compromised, then the law says that rent has to be paid on time and in full as usual.
The landlord is mandated to complete repairs as soon as possible after the tenant makes an urgent repair request. If this is not done in a timely manner, the department can be contacted regarding recourse.
The causes of the LA fires that devastated parts of Los Angeles County are being speculated about as the region attempts to recover from the massive devastation. The investigations are complex, and a related question is, who’s going to pay damages?
Read the whole thing?
Get the week's signal, not the noise
Our sharpest reporting on energy, climate and nature — free, once a week.
