U.S. government extends foreclosure moratorium for Los Angeles fire victims
U.S. Secretary of Housing and Urban Development Scott Turner has announced that the Trump administration will extend a foreclosure moratorium for an additional 90 days to victims of the Los Angeles fires. Turner made the announcement during an event in Altadena, California, a community affected by the fires, alongside Los Angeles County District 5 Supervisor Kathryn Barger. The event took place outside the popular Fairoaks Burger, a local gathering spot in the heart of Altadena. The extension of the moratorium provides much-needed relief to homeowners who have been impacted by the devastating fires and are struggling to recover and rebuild their lives.
During the event, Turner praised the resilience and strength of the Altadena and Palisades communities, which have been hit hard by the fires. He also emphasized the importance of faith, including his own Christian faith, as a source of inspiration and hope during difficult times. The secretary highlighted the role of faith in helping individuals and communities rise to the challenge of overcoming adversity and rebuilding their lives.
Key details of the foreclosure moratorium
The foreclosure moratorium applies to loans insured by the Federal Housing Administration (FHA). This means that homeowners with FHA-insured single-family mortgages in the Presidentially Declared Major Disaster Area (PDMDA) in Los Angeles County will be protected from foreclosure for an additional 90 days. The moratorium had previously been set to expire on April 8, 2025, but it has now been extended through July 7, 2025. This extension is part of HUD’s broader commitment to supporting Americans affected by natural disasters by providing flexibility to families in need.
In a press statement, HUD explained that the FHA-insured single-family mortgage extension is a direct response to the needs of families in the PDMDA. There are over 100,000 FHA-insured mortgages in Los Angeles County PDMDA, and HUD is working closely with mortgage servicers to assess the extent of properties that have been severely damaged or destroyed by the fires. The moratorium prohibits mortgage servicers from initiating or completing foreclosure actions on FHA-insured single-family forward or Home Equity Conversion mortgages in the affected area.
HUD and mortgage servicers collaborate to assist affected homeowners
HUD is collaborating with mortgage servicers to ensure that homeowners affected by the fires receive the support they need. The moratorium is designed to provide breathing room for families who are dealing with the aftermath of the fires and may be unable to make their mortgage payments. By temporarily halting foreclosure proceedings, the moratorium gives homeowners time to assess their financial situation, explore their options, and work with their lenders to find a solution.
In addition to the foreclosure moratorium, several private lenders have also stepped in to offer forbearance to homeowners affected by the fires. Forbearance allows homeowners to temporarily stop making mortgage payments without fear of negative credit reporting. However, it is important to note that at the end of the forbearance period, homeowners will generally be required to make full payment of the amount owed. This means that while forbearance provides temporary relief, homeowners will still need to find a long-term solution to avoid falling behind on their payments.
Local initiatives to preserve community character
Supervisor Kathryn Barger announced that a local "land bank" will be established to help Altadena residents rebuild their homes and preserve the character of the area. The land bank is a crucial initiative, especially for the historic Black community in Altadena, which has been a vital part of the area’s identity for decades. The land bank will provide resources and support to help residents rebuild their homes in a way that honors the community’s history and cultural heritage.
Secretary Turner also emphasized HUD’s commitment to helping the affected communities rebuild. During his visit to the Pacific Palisades on Wednesday night, he met with residents to discuss their concerns and explore how HUD can assist with the rebuilding effort. Turner’s visit underscored the importance of listening to the needs of the community and tailoring federal support to address those needs effectively.
A pathway to recovery and rebuilding
The extension of the foreclosure moratorium and the establishment of the land bank are important steps toward helping Los Angeles County residents recover from the fires. These initiatives demonstrate the federal government’s commitment to supporting communities affected by natural disasters and ensuring that they have the resources they need to rebuild their lives.
While the road to recovery will be long and challenging, the additional time provided by the moratorium and the support of local and federal initiatives offer hope to homeowners who are facing uncertainty. By working together, the government, lenders, and community organizations can help ensure that affected families have a pathway to stability and a brighter future.
