The January 2025 Eaton Fire tore through Los Angeles County, burning over 14,000 acres, destroying homes across Altadena, Pasadena, and Sierra Madre, and leaving families grieving, displaced, and unsure of what their future has in store.
In the aftermath of this devastating wildfire, California stepped in with new protections for homeowners trying to rebuild.
Assembly Bill 238 (AB 238), which took effect on September 22, 2025, gives wildfire survivors a way to catch their breath financially. The law sets up a program for mortgage forbearance relief, allowing homeowners affected by the fire to temporarily pause or reduce their mortgage payments.
What This Means for Homeowners
If your mortgage is federally backed and your ability to pay was impacted by the January fires, you could qualify for relief under AB 238. This means that if you’re struggling to keep up with your mortgage because of fire-related damage, lost income, or temporary displacement, you could be eligible to pause or reduce your payments without penalty.
Homeowners can request an initial 90-day break from their mortgage payments, and if more time is needed, they can extend it in 90-day increments for up to a full year. This flexibility gives families the time they need to focus on rebuilding, without the immediate financial pressure of keeping up with monthly payments.
Importantly, the law protects borrowers during this period. Lenders are not allowed to charge late fees, tack on default interest, or increase interest rates while under forbearance. They also cannot start or continue foreclosure or eviction proceedings, ensuring that families aren’t forced out of their homes while trying to recover.
To qualify, homeowners must submit a written request and confirm that their financial hardship is directly tied to the wildfire disaster. That affirmation helps ensure the program supports those who truly need it most: homeowners whose lives were directly disrupted by the January wildfires.
It’s a small but meaningful way to help families get back on their feet without losing the homes they’re trying to rebuild. For many, it represents a critical safety net, a chance to stabilize, regroup, and move forward after one of the most devastating disasters Los Angeles County has seen in years.
How It Protects Borrowers
AB 238 also includes safeguards to prevent further financial harm. Lenders must respond to requests within 10 days and report mortgage accounts accurately, meaning they can’t mark your account as “in forbearance” in a way that hurts your credit. The goal is to give survivors a little financial breathing room while keeping their long-term credit health intact.
Accountability Still Matters
At the beginning of the year, Singleton Schreiber filed a lawsuit against Southern California Edison Company (SCE) and Edison International for damages related to the catastrophic Eaton Fire that began on January 7, 2025, in Los Angeles County.
We currently represent thousands of plaintiffs affected by the Eaton Fire, helping our clients navigate the path to recovery by pursuing accountability from parties responsible for the fire, helping families secure compensation for property damage, loss, and other financial hardships. By combining legal advocacy with practical support, Singleton Schreiber is working to give Eaton Fire survivors a real chance to rebuild their homes and their lives.
If your home or finances were impacted by the Eaton Fire, now is the time to act. AB 238 relief is available, and taking advantage of it could mean the difference between recovery and financial strain.