October 9, 2026
Your house is gone, and you still owe the mortgage on it. That’s the reality for thousands of California families after a total loss fire, and it’s the reason mortgage forbearance exists. On September 15, 2026, Governor Newsom signed two bills that change how forbearance works after a disaster: AB 1847 for Los Angeles fire survivors and AB 1842 for the rest of the state.
Here is what each law does, who it helps, and how forbearance fits alongside your insurance claim.
What mortgage forbearance is and what it isn’t
Mortgage forbearance is an agreement with your loan servicer to pause your payments for a set period. It is not forgiveness. The payments you skip don’t disappear. The question is when and how you pay them back, and that’s what these new laws address.
What AB 1847 changes for Los Angeles fire survivors
AB 1847 applies to borrowers affected by the Eaton fire, the Palisades fire, and the straight-line winds, all covered by the state of emergency declared on January 7, 2025. It makes four main changes.
First, the forbearance period doubles from 12 months to 24. Second, the deadline to request forbearance moves from January 7, 2027 to January 7, 2029. Third, servicers must offer to defer the missed payments to the end of the loan term, and a borrower who was current when forbearance began can’t be forced to repay a lump sum. Fourth, servicers can’t charge late fees or default interest during the waiting period or the forbearance itself, and they must report your account as current during forbearance unless it was already delinquent before the disaster.
The law also tightens the process. Servicers now have 21 days to approve or deny a request, extendable if they need more documents. Any request for documents has to relate to your hardship, whether the home can be lived in, or your restoration efforts. If a servicer denies you, it has to give you a written explanation that includes the text of the guideline behind the denial. If your application has a fixable defect, you get 21 calendar days to cure it.
Who qualifies
To qualify under AB 1847, you affirm two things: that you’re experiencing financial hardship, and that the property securing the loan is uninhabitable because of the wildfire disaster. For a family whose home burned to the ground, the second point is not a close call. Your servicer’s requests for documents have to relate to your hardship, whether the home can be lived in, or your restoration efforts.
What AB 1842 means for the rest of California
AB 1842 is the broader bill. According to the Governor’s office, it makes mortgage forbearance protections permanent after disasters and builds an automatic process into state law so borrowers have a path away from foreclosure. It prohibits penalties and late fees during a forbearance after a major disaster.
If your home was lost in a fire outside Los Angeles, including in San Diego County, the details of what you’re entitled to depend on whether your loss is tied to a declared disaster and how the final law applies to your loan. Ask your servicer in writing, and call us if you get a runaround.
Forbearance and your insurance claim run on different clocks
Here is the point that catches families off guard. The mortgage request deadline moved to January 7, 2029. The deadline to sue your insurance company did not move. For losses tied to a state of emergency, you generally have 24 months from the date of loss, which means January 7, 2027 for the Palisades and Eaton fires. We explain how that works, and when it can be paused, in our guide to California fire insurance claim deadlines.
The two also affect each other in a practical way. Your lender is often named on the dwelling payments from your insurance company, which can give the lender a say in when rebuild money is released. A tangle between your servicer and your insurance company is one of the most common reasons rebuilds stall. Forbearance buys you breathing room on the mortgage so you can focus on getting your claim paid in full, but it does nothing to speed up your claim or stop the insurance clock.
What to do right now
Request forbearance in writing, even if you’ve already asked by phone, and keep a copy with the date. If you’re already in a 12-month forbearance, ask your servicer in writing how the new 24-month window applies to your loan. If your servicer denies you, ask for the written explanation and the guideline it relies on.
Then look at your insurance claim with the same urgency. If your total loss claim has been delayed, underpaid, or closed, the mortgage relief won’t fix that. Call (833) 324-5399 or schedule a free consultation. We work on contingency, so there’s no fee unless we win.
Frequently Asked Questions
Does mortgage forbearance forgive my mortgage?
No. Forbearance pauses your payments, but the amounts you skip are still owed. Under AB 1847, servicers must offer to defer those amounts to the end of your loan term, and a borrower who was current when forbearance began can’t be required to repay a lump sum.
What is the deadline to request mortgage forbearance for the Los Angeles fires?
AB 1847 moves the deadline from January 7, 2027 to January 7, 2029. The forbearance period itself doubles from 12 months to 24.
Will forbearance hurt my credit?
Under AB 1847, your servicer must report your account as current during forbearance, unless it was already delinquent before the disaster. If your credit report shows something different, dispute it and keep your forbearance paperwork.
Do I qualify if my home was a total loss?
Probably. Under AB 1847 you affirm financial hardship and that the property securing the loan is uninhabitable because of the wildfire disaster. A home destroyed by fire meets the second test. Your servicer can request documents, but the requests must relate to hardship, habitability, or restoration.
Does forbearance stop the deadline to sue my insurance company?
No. Forbearance only affects your mortgage payments. The deadline to sue your insurance company is separate. For losses tied to a declared state of emergency, it’s generally 24 months from the date of loss, and it can sometimes be paused while your insurance company is still handling your claim.
Does AB 1842 apply if my fire was outside Los Angeles?
AB 1842 is the statewide bill, and it establishes forbearance protections after major disasters going forward. How it applies to your loss depends on whether the loss is tied to a declared disaster and on the final terms of the law, so ask your servicer in writing and have an attorney review any denial.