Amid the Fires, Do I Still Need to Pay My Mortgage, Rent?
During a disaster, getting to safety is the top priority. But for many Angelenos displaced by the devastating wildfires raging across Los Angeles County, questions loom about what comes next.
My Home Burned Down. Do I Still Have to Pay My Mortgage?
Homeowners affected by a disaster are often eligible to reduce or suspend their mortgage payments for up to 12 months, according to Fannie Mae, the Federal National Mortgage Assn.
If your home was destroyed in a wildfire, contact your mortgage servicer as soon as possible to discuss your options. You may be qualified for a forbearance plan that will temporarily lower or eliminate your monthly payment and prevent late fees and foreclosure. You will eventually have to pay what you owe once your forbearance plan expires. Fannie Mae offers resources to avoid paying a lump sum in these circumstances, including disaster payment deferral.
What About My Property Taxes?
If your home or business was affected by the windstorms or fires, you may be eligible for temporary property tax relief through the Los Angeles County assessor’s office. You should file a misfortune or calamity claim to request reassessment of your property.
You will qualify for tax relief only if the damage to your property exceeds $10,000 and you file your claim within 12 months of the incident. If approved, your reduced tax rate will remain in effect until your property is restored or rebuilt.
My Rented Home or Business Was Damaged or Destroyed. Do I Still Need to Pay Rent?
Under California law, your rental agreement will become void if the rental unit is completely destroyed in a disaster. You will no longer be required to pay rent and your landlord must return your security deposit.
If your rental unit is partially destroyed and can’t be lived in, you can choose to end your rental agreement or wait for your landlord to make the necessary repairs. You will not have to pay rent while waiting for repairs, unless you move back into the unit.
I Live in an Area Not Directly Affected by the Fires. Will My Rent Go Up?
California’s anti-price-gouging law is now in effect, which limits rent increases to no more than 10% above pre-emergency levels after an emergency is declared. The limit applies to both existing tenants and new leases.
Price-gouging protections apply anywhere in the state where displacement increases demand for housing, according to the California Apartment Assn.
Do I Need to Pay My Utility Bills?
Whether you have to continue paying your gas, water, and power bills depends on your providers, where you live, and the condition of your home.
Southern California Edison, which provides power to the Altadena area, suspended billing for all customers who live in mandatory evacuation zones, said company spokesperson Gabriela Ornelas. The suspensions went into effect on January 8. The company is also working with Los Angeles County to get the addresses of homes that have been completely destroyed, which will be permanently removed from the billing list.
Where Can I Get Help Finding Temporary Housing?
A rush to snatch up vacant units is on, and some landlords are raising rents far beyond what the anti-price-gouging law allows. This will make it difficult for many people to find an affordable place to live.
If you can’t find housing with friends or family, there are a few options for free or discounted housing.
Airbnb.org, a nonprofit that works with Airbnb hosts, is providing free, temporary housing for those displaced by the fires, and you can sign up here. Some hotels are also offering discounted rates. The Balaciano Group, a landlord with several apartment complexes in the San Fernando Valley, is also offering discounts to fire victims.
Is Government Aid Available?
You can receive $770 from the Federal Emergency Management Agency under its serious needs assistance program, which can help you pay for things such as water, baby formula, and food. To apply, call 1-800-621-3362 or visit https://www.disasterassistance.gov/.
FEMA also offers temporary housing assistance, however, California must request that assistance for it to kick in.
What Can Renter’s Insurance Do?
If you have renter’s insurance, file a claim as soon as you can.
Rick Dinger, president of Crescenta Valley Insurance, said renters policies often offer at least $25,000 to replace damaged personal property and help you find and pay for a new place to live.
Conclusion
The devastating wildfires in Los Angeles County have left many individuals and families displaced, with questions about their next steps. By understanding your options for mortgage, rent, and utility payments, you can better navigate this difficult time.
FAQs
- What if I’m unable to pay my mortgage or rent?
- Contact your mortgage servicer or landlord to discuss your options and potentially suspend or reduce payments.
- Can I get help with temporary housing?
- Yes, you can reach out to local organizations, such as Airbnb.org, for free or discounted housing.
- Is government aid available?
- Yes, FEMA offers temporary housing assistance and serious needs assistance.
- What can I do about my renters insurance?
- File a claim as soon as possible to replace damaged personal property and find a new place to live.
