New California law gives LA-area fire victims up to a year of mortgage relief

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What does the act do? The Mortgage Forbearance Act is for owners of residential properties up to four units who face financial hardship because of the Palisades and Eaton fires. The law bars lenders from charging late fees, imposing higher interest rates and foreclosing on properties during the forbearance period.

To get started, homeowners have to ask lenders for an initial 90 days of forbearance, which can be extended in 90-day increments. Shortly after the fires ignited in January, the state offered some mortgage relief to affected homeowners and announced that more than 400 lenders had committed to a three-month forbearance period. The new law extends that period.

How could this impact me? The act prohibits lenders from reporting the pause in payments to credit bu