As firefighters make progress in containing the devastating wildfires in Los Angeles, families are beginning to rebuild their lives. The toll is immeasurable for those who have lost loved ones or homes. The Palisades Fire has consumed over 23,000 acres and destroyed at least 10,000 structures, while the Eaton Fire has burned 14,000 acres and destroyed around 7,000 structures, with at least 24 confirmed fatalities.
The full cost of property damage is still unknown, but these wildfires are on track to become one of the costliest natural disasters in U.S. history. In response, major banks like JPMorgan Chase and Bank of America are launching initiatives to provide mortgage forbearance to affected homeowners. Fannie Mae and Freddie Mac are also offering mortgage relief options.
Chase’s mortgage forbearance program allows borrowers to temporarily halt or reduce mortgage payments. The forbearance period initially lasts for three months, extendable in three-month intervals up to 12 months. Borrowers can request forbearance, which is swiftly reviewed within two business days, offering immediate protections like fee and foreclosure protections, as well as no negative credit reporting.
For long-term relief beyond the 12-month forbearance period, Chase will consider options like more forbearance, loan modifications, a short sale, or a deed-in-lieu based on individual circumstances. Bank of America has activated its Client Assistance Program, allowing customers affected by the wildfires to seek assistance such as mortgage forbearance or leniency on missed payments.
Homeowners with Chase mortgages impacted by the wildfires can visit the Chase website or call the Special Care Line at 1-800-254-7713 to start a forbearance request. Bank of America customers can contact 855-729-1764 or use the Bank of America mobile app with the keyword “wildfires” to access assistance from ERICA, the bank’s virtual assistant. Fannie Mae and Freddie Mac provide mortgage relief resources for affected homeowners through the lenders they work with.
In times of crisis such as the recent wildfires in California, it is crucial for affected individuals to know where to turn for assistance. Both Fannie Mae and Freddie Mac, two of the nation’s largest mortgage finance companies, have outlined steps for homeowners and renters grappling with the aftermath of natural disasters.
For those seeking support from Fannie Mae, a dedicated hotline has been set up. Homeowners and renters can connect with assistance by calling 855-HERE2HELP (855-437-3243). Additionally, valuable resources can be found on Fannie Mae’s website to aid in the recovery process.
Freddie Mac, on the other hand, advises individuals to reach out to their mortgage servicer for guidance. If their mortgage is owned by Freddie Mac, they may qualify for relief for a period of up to 12 months, during which late fees or penalties will be waived. To access further information and assistance, a dedicated page on Freddie Mac’s website has been established to address recovery efforts post-disaster.
In a show of solidarity and support for those affected by the wildfires, major financial institutions such as Bank of America and Wells Fargo have stepped up to provide financial assistance towards relief efforts.
Bank of America has pledged a total of $2 million towards aiding those impacted by the wildfires. A spokesperson for the company disclosed that the initial $1 million has been designated for the American Red Cross, with the remaining $500,000 each allocated to the Los Angeles Regional Food Bank and a small business relief fund initiated by the Los Angeles Area Chamber of Commerce.
Similarly, Wells Fargo has contributed $1.3 million through the Wells Fargo Foundation to support relief endeavors. A spokesperson for the bank shared that beneficiaries of this contribution include the American Red Cross, the California Community Foundation’s Wildfire Recovery Fund, the Pasadena Community Foundation’s Eaton Canyon Fire Relief and Recovery Fund, as well as the Los Angeles Fire Department Foundation. The bank has also expressed intentions to provide additional donations in the coming days to aid in small business recovery efforts.
For homeowners grappling with mortgage-related issues in the aftermath of the wildfires, Wells Fargo has established a protocol to assist them. Customers who have incurred property damage are advised to initiate the process by filing a claim with their homeowners’ insurance. Subsequently, they can seek guidance from Wells Fargo’s disaster assistance team by calling 1-888-818-9147.
In light of the challenges faced by individuals impacted by the wildfires, the Internal Revenue Service (IRS) has extended the tax deadline for those affected. This extension aims to provide additional time and flexibility for individuals navigating the complexities of their tax obligations amidst the ongoing recovery efforts in California.
As communities band together to overcome the devastation caused by the wildfires, the collaborative efforts of financial institutions, government agencies, and charitable organizations serve as beacons of hope and support for those in need. By leveraging available resources and assistance programs, affected individuals can begin the journey towards recovery and rebuilding in the wake of these natural disasters.
