WASHINGTON — The survivors of disasters would be eligible for six months of mortgage relief under a bill introduced by two senators who represent states that states have been hit by fires and floods.
The Mortgage Relief for Disaster Survivors Act would apply to homeowners with federally backed loans in areas declared disasters since Jan. 1 without accumulating interest or penalties during the six-month period. Borrowers could apply for additional six-month extensions under the bill’s provisions.
‘Struggling to Recover’
“Earlier this year, we watched as families in Los Angeles were devastated by wildfires, and to date, many homeowners are still struggling to rebuild from this disaster,” bill co-sponsor Sen. Adam Schiff (D-CA) said in a statement. “As natural disasters become more frequent due to climate change, it is critical that we pave a path to stability for homeowners in times of crisis.”
Parts of Schiff’s former congressional district in Southern California was hit in January by the Eaton fire, which destroyed nearly 6,000 homes and killing at least 19 people.
The bill is being co-sponsored by Sen. Michael Bennet (D-CO), whose state was struck by the 2021 Marshall Firef that destroyed 1,200 homes.
Trying to Pick Up the Pieces
“Coloradans know all too well how difficult it is to pick up the pieces and move forward after catastrophic wildfires,” Bennet said in a statement. “When mounting financial and emotional costs of recovery weigh on families, they should be able to take time to put their lives back together and rebuild their homes.”
House members who represent Altadena, Pacific Palisades and Malibu in California introduced a companion bill this year that would provide 180 days of mortgage relief without penalties or late fees. The pause would apply only to federally backed loans.
Nonfederal lenders are not required to offer such relief.
