At Insignia Mortgage, our hearts go out to those affected by the recent Los Angeles and Altadena fires. We understand this is a deeply challenging time and are here to guide you. Below are several key considerations and best practices based on our experience assisting homeowners during post-catastrophe recovery.
Best Practices for Homeowners:
- Property Taxes
If your property has been significantly damaged or destroyed, you may qualify for a reduction in property taxes to reflect the assessed land value. Contact your county tax assessor’s office for details or visit https://ttc.lacounty.gov/ for more information.
- Mortgage Payments
While the loss of your home is devastating, it’s important to remain current on your mortgage payments. Please note that the obligation to pay your mortgage remains in effect even if your home has been damaged or destroyed.
- Insurance Claims
If you plan to file an insurance claim for property damage, notify your lender immediately to understand their requirements for processing insurance claim funds. Clear communication is essential to avoid delays.
- Forbearance Requests
If you are considering requesting a forbearance on your mortgage payments, ensure that you obtain written confirmation from your lender. This confirmation should specify that the forbearance will not negatively affect your credit report.
- Property Vesting
Avoid changing the vesting (ownership structure) of your property without prior approval from your insurance company. Doing so could affect your ability to file or process an insurance claim.
- Property Tax Relief
Per Executive Order N-10-25, property owners in affected ZIP codes (90019, 90041, 90049, 90066, 90265, 90272, 90290, 90402, 91001, 91040, 91104, 91106, 91107, 93535, or 93536) may delay their property tax payments until April 10, 2026, without penalty. Please note that while payment is delayed, taxes will still need to be paid. For the full executive order and details, visit https://www.gov.ca.gov/wp-content/uploads/2025/01/2025.01.16.-EO-Property-Tax-Penalties-Relief-_bl-11.51am_-GGN-Signed_.pdf.
- Temporary Housing Assistance
If your home is uninhabitable, you may qualify for temporary housing assistance through your insurance policy. Contact your insurance provider to confirm coverage for Additional Living Expenses (ALE), which may include hotel stays, rental costs, and other expenses.
- FEMA and Disaster Assistance
If the fire has been declared a federal disaster, you may be eligible for financial or housing assistance from FEMA. Visit https://www.fema.gov/disaster-assistance or call 1-800-621-3362 to learn more about available resources.
- Document Recovery
If you’ve lost important documents like property deeds, insurance policies, or identification, begin the recovery process as soon as possible. Contact your local recorder’s office for property records or visit https://www.usa.gov/replace-vital-documents for tips on replacing lost identification or documents.
- Utility Notifications
Contact your utility providers (electricity, gas, water) to inform them of any damage to your property. Request temporary disconnection if necessary and inquire about disaster relief programs they may offer, such as waived fees or payment assistance.
Important Disclaimer:
The above information is provided by Insignia Mortgage for informational purposes only and does not constitute legal, tax, or financial advice. We recommend consulting with qualified professionals for advice tailored to your unique circumstances.
If you have additional questions or need further assistance, please don’t hesitate to contact us.
Warm regards,
The Insignia Mortgage Team
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These are the opinions of the author. For financial advice, please talk to your CPA or financial professional.
