Homes were severely damaged or destroyed by burnt fires that coke the Pacific Palisades and Altadna neighborhoods in January and may qualify for mortgage relief up to $20,000.
On June 12, the state will launch the Calassist mortgage fund, which provides grants to displaced homeowners whose homes cannot survive due to disaster.
The Karassist Mortgage Fund, managed by California housing financial institutions, recognizes only the acceptance of the governor’s State of Emergency Declaration or the disaster approved by the U.S. President between January 2023 and January 2025.
Announced this year’s Eaton and Palisade Fires in Los Angeles, the 2024 Park Fires in Los Angeles, the 2024 Fires in Bitt, Tehama and Lizi County, and the 2024 San Diego flooding.
According to the Consumer Financial Protection Bureau, after the disaster, you are still responsible for paying the mortgage even if your home no longer exists or is damaged to the point where it is impossible.
If you are affected by the disaster, you can choose to reduce or suspend your mortgage for 12 months, according to Fannie Mae, a federal National Mortgage Association. If you follow a tolerant plan, you will eventually have to pay what you owe once the plan expires.
How mortgage relief can help you
The Karassist Mortgage Fund can grant you three months of mortgage payments, up to $20,000.
This grant is paid directly to your mortgage service provider, but your provider must participate in the program.
Mortgage service providers participating in the program include:
- It's Western capital
- Arvest
- Guaranteed financial group
- Bunker, California
- Bank of America
- BSI Finance
- Carrington Mortgage Services
- Cascading financial services
- celink
- Chase
- Churchill Mortgage
- Clink N'close Inc
- FCI lender services
- Free mortgage
- Guild mortgage
- Kinecta
- Loan warehouse
- M&T Bank
- Midland Mortgage (Bank)
- Mr. Cooper
- New US funded company
- Patelco Credit Union
- pennymac
- PNC Bank
- Provident fund funds
- Dot mortgage
- Royal Pacific Funding
- San Diego Credit Union
- Select Porfolio Services (SPS)
- ServiceMac
- SN Services
- Statebridge Company
- Travis Credit Union
- Truist
- Valon Mortgage
- Vanderbuilt Mortgage
- Veterans United
- Wintrust mortgage
If you receive a grant, you don't have to pay it back.
How do you apply for a mortgage exemption
On June 12, when the application window opens, you can apply to visit the Calassist Mortgage Fund website and click “Apply Now” to complete the online application.
The paperwork you need to apply includes:
- Mortgage Statement
- Bank statement
- Utilities bills
- Homeowner Insurance or FEMA Claim
- Certificate of income
The program has limited funding, according to the Calassist Mortgage Fund website.
Applications will be reviewed in the order of submission.
This is a first come first served offer. Once all funds are granted, the program will be closed.
You can get updates for the program by registering for an email update located at the bottom of the Calassist website.
What makes you eligible for the program
if:
- Your primary residence was destroyed or uninhabitable due to a qualified disaster, which occurred between January 1, 2023 and January 8, 2025.
- You meet the program's household income limits, which include the combined income of all designated persons in the mortgage and/or trust deed. Household income limits vary by county, such as in Los Angeles County, where the income limit is $140,700; a full list can be found online.
- You have a mortgage or a reverse mortgage.
- You own a single-family home, apartment or permanently fixed manufacturing home, including up to four units.
If you need help preparing or completing the application, call the Calassist Mortgage Fund for in-depth, one-to-one assistance, Monday to Friday from 8pm to 5pm (800) 501-0019.
