Owners of disaster-wrecked homes can pause mortgage payments for up to a year
Borrowers whose home of up to four units became uninhabitable in a federally declared disaster can ask for forbearance within six months. Servicers must offer 180 days, extendable to 12 months, with no late fees or default interest, and report the loan as current.
Who it affects
Mortgage borrowers in federally declared disasters and loan servicers
When
This law takes effect on January 1, 2027. California laws take effect on January 1 of the year after they are signed, unless the law says otherwise.
- : Signed into law
- : This law takes effect
Official text
California AB 1842: California Mortgage Relief Act.
On California Legislative Information. The official text is what counts; read it before you act.
Not legal advice. Plain-English summaries to help you find what changes and when. Not legal advice: read the official text, and ask a lawyer about your situation.