A new bill has been introduced in the California legislature that will provide a temporary relief for homeowners impacted by the recent Los Angeles County wildfires.
CBS News reports that the “Mortgage Relief for Disaster Survivors Act” would give homeowners in declared disaster areas six months of mortgage forbearance, with the option of extending for an additional six months. During this forbearance period, homeowners will not face interest, penalties, or fees accruing.
The bill, which was inspired by the mortgage forbearance aspects of the Covid-era CARES Act, was introduced by Reps. Judy Chu and Brad Sherman, Democrats who represent the Eaton and Palisades fire zones respectively.
“Disaster survivors – like thousands of my constituents still reeling from the devastating Eaton Fire – should not have to worrying about missing a mortgage payment in the immediate aftermath of natural disasters,” Chu said.
“The devastating January wildfires in Los Angeles caused widespread economic harm, and just as we acted with urgency and compassion during the Covid-19 pandemic, we must now adapt the forbearance rules to meet the scale of this disaster,” Sherman said.
