The wildfires which have burned through Los Angeles County for more than a week now have damaged or destroyed thousands of homes, wiping out entire neighborhoods and causing many households to lose everything.
As their homes are reduced to ashes or rubble, residents of the areas ravaged by fires might be confused about whether they need to continue paying their mortgage, rent, utility bills, and property taxes.
If you’ve lost your home in the fires, here’s what happens next.
Mortgages
Unfortunately, mortgages are still due even if a homeowner has lost their property to the fires. However, they could be eligible to reduce or temporarily suspend their mortgage payments for up to 12 months by entering a forbearance plan with their mortgage servicer, according to the Federal National Mortgage Association, better known as Fannie Mae.
While this temporary reduction or pause in payments is in place, homeowners will not incur late fees, and foreclosure and other legal proceedings are suspended.
Some of the U.S. biggest banks have already offered to ease mortgage repayments for victims of the Los Angeles fires. JPMorgan Chase said this week that it was providing disaster forbearance for mortgage customers affected by the fires, while Bank of America said it offers the possibility of mortgage forbearance to its customers.
Rent
If a rental unit was completely destroyed by the fires, the rental or lease agreement between tenant and landlord becomes void under California Law. That means that tenants no longer need to pay their landlords rent, and landlords are no longer required to provide housing. Landlords also need to return any prepaid rent and the unit’s deposit to the tenant.
The situation is a little more complicated when a rental unit has only been partially destroyed or damaged after a disaster and it can’t be lived in. In this case, a tenant can decide to end the rental or lease agreement and find a new place to live, or they can decide to stay.
Should a tenant want to stay, it’s then up to the landlord to make the necessary repairs to make the place liveable again. At that point, the tenant will move back and resume paying rent.
Lisa Price (R) hugs daughter Madison while visiting her home on Jan 14, 2025, in the Pacific Palisades, CA. The family has lived there for over 20 years. Lisa Price (R) hugs daughter Madison while visiting her home on Jan 14, 2025, in the Pacific Palisades, CA. The family has lived there for over 20 years. Alexi Rosenfeld/Getty Images
Utility Bills
It’s up to individual providers to suspend utility bill payments for those affected by the Los Angeles fires.
Southern California Edison (SCE), which delivers electricity to 15 million people across Southern, Central, and Coastal California, suspended billing for all customers living in mandatory evacuation zones as of January 8, as reported by the Los Angeles Times.
Company spokesperson Gabriela Ornelas said that the company is also planning on permanently removing homes that have been completely destroyed by the fires from the billing list.
Southern California Gas is forgiving the current bill and the most recent bills of customers whose properties have been destroyed by the blazes, and those who’ve had their gas supply turned off for safety reasons won’t be billed for the duration of the outage.
The Los Angeles Department of Water and Power has also paused billing notices in the areas affected by the fires.
Property Taxes
Homeowners whose properties have suffered more than $10,000 in damages could qualify for property tax relief. What they need to do is file a misfortune or calamity claim within 12 months of the incident through the Los Angeles County assessor’s office.
Any approved reduction in property tax would apply until the property is restored or rebuilt.
LA Fires Update: Do Evacuees Still Have To Pay Mortgage and Utility Bills?
