House construction in Altadena (Photo – Staff)
On Wednesday, Feb. 11, Assemblymember John Harabedian (D-Pasadena) announced new legislation aimed at extending mortgage relief for survivors of the Los Angeles fires and establishing a statewide mortgage forbearance program for future natural disaster victims.
By News Desk
Harabedian’s proposal would extend AB 238, The Mortgage Forbearance Act (Harabedian, 2025), by an additional two years for survivors of the Eaton and Palisades fires who are struggling to make timely mortgage payments. The extension is intended to provide continued financial relief for homeowners still displaced and rebuilding.
Recovery from the Eaton and Palisades fires has proven longer and more complex than initially anticipated. Insurance claim delays, labor and materials shortages, permitting backlogs, and rising rebuilding costs have left many homeowners unable to return to their properties beyond the original forbearance period.
“Wildfire victims continue to face incredible challenges and need additional support as they continue to rebuild their lives. By extending mortgage forbearance for up to two years total, AB 1847 will ensure that families are not subject to foreclosure while they recover and get back on their feet,” Harabedian said.
In addition to extending relief for fire survivors, Harabedian is introducing AB 1842, the California Emergency Mortgage Relief Act. The proposed legislation would create a statewide framework allowing homeowners to pause mortgage payments whenever a state of emergency is declared by the Governor or the federal government. The measure would apply to disasters including wildfires, floods, earthquakes, and other catastrophic events.
Described as a first-of-its-kind statewide protection, the bill aims to provide a clear and consistent process for mortgage forbearance during declared emergencies.
“California is facing more frequent and severe natural disasters, and families should not have to worry about mortgage payments on homes they cannot live in,” Harabedian said. “These bills are about more than mortgages—they are about giving families hope, security, and a chance to rebuild their lives after unimaginable loss. No Californian should have to choose between losing their home and recovering from a disaster. By extending protections and creating a statewide safety net, we are standing with families when they need it most, helping them heal, rebuild, and stay rooted in their communities.”
Both bills include consumer protections such as prohibiting foreclosure during forbearance periods, safeguarding credit reporting, and establishing clear rules for mortgage servicer accountability and oversight.
The measures are scheduled to be heard in policy committee this spring.
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