But so often it is.
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Posted on 01/17/2025 7:19:19 AM PST by ChicagoConservative27
As deadly wildfires continue scorching their way through Los Angeles and the surrounding area for the second straight week, homeowners are worried about the prospect of defaulting on their mortgages in the wake of the unprecedented disaster were offered some reprieve from the nation’s major lenders.
On Monday, Fannie Mae and Freddie Mac unveiled mortgage assistance and relief options for customers reeling from the historic Southern California fires.
Both government-backed corporations are offering 12-month forbearance plans, meaning that struggling homeowners could either reduce or suspend their mortgage payments for up to a year without incurring late fees, foreclosure, or other types of legal proceedings.
(Excerpt) Read more at nypost.com ...
I expect many homeowners will just walk away from their property, default on their mortgage and leave the mortgage holder with a scorched piece of land..
They should probably go to Joe Pedo and beg for forgiveness. I imagine Jo Jo will still be granting “forgiveness” and issuing EOs for the next 20 years.
A building lot in Pacific Palisades has got to be worth a few hundred thousand dollars.
Most likely a lot less then what one owes on it.
the true homeowners, the banks, will get back every penny because they require the borrower to pay for insurance that will more than cover what they lent. And the taxes are paid along with the mortgage and insurance.
Do the people the write this garbage understand anything about bank loans?
Yeah. ...home owners signed a legal contract to pay mortgage payments. There was no clause in that legal contract that mortgage payments not required if house is destroyed. We have to believe in law and order.
The real problem for the borrower is not the mortgage and the taxes which will be fully covered by insurance and the taxes that are included in the mortgage payment. It is that the borrower might lose some of the appreciation the home experienced after the loan was issued, and they still need to find a place to live.
It's likely many of those affected did not have PMI coverage.
At the end of the 12-month period, the homeowner will be required to repay the 12 months of missed payments along with any accrued interest. To avoid this, the homeowner would need to set up a repayment plan or refinance the mortgage.
For homeowners without fire insurance, bankruptcy may become their only option. While it is an unfortunate situation, bankruptcy exists as a legal tool to provide financial relief in such dire circumstances.
Do they not have insurance?
Of course they should. Just like a worthless student loan you bought it you own it.
Problem is the insurance company cancelled the insurance before the fire happened.
Doh... You just bought a $20 million dollar home, made your first payment and now that it’s burned down you get it all for free???
Everybody’s got to pay the piper... That’s life. I would assume most of those with mortgages had insurance... Those who used cash and didn’t bother insuring... Well... Hopefully there’s a lot more cash in your bank account. There will be plenty of people taking advantage of this disaster to fill their pockets with ill gotten cash... It happens during every disaster.
Making it easier for these shysters shouldn’t be the governments job.
There is more than one insurance company out there... It is your responsibility to insure your stuff... Not the governments responsibility.
All Part of Their Plan™
Developers are salivating at the chance to get their hands on the land for pennies on the dollar.
Newsom already has plans:
“As we start rebuilding, starting to relax some of the zoning laws, especially in a more working class neighborhood like Altadena. So that rather than putting up single-family residences, we could allow developers to build duplexes and apartments.”
You can bet those developers who will receive special favors are all major donors to Newsom’s campaigns.
They WERE insured. State Farm dropped them just 2 weeks before the fires.
But so often it is.
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