LA residents whose homes burnt down in
wildfires will still have to pay off mortgages,
property taxes
New York Post,
by
Snejana Farberov
Original Article
Posted By: Imright,
1/17/2025 2:22:45 AM
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,
Post Reply
Reminder: “WE ARE A SALON AND NOT A SALOON”
Your thoughts, comments, and ideas are always welcome here. But we ask you to please be mindful and respectful. Threatening or crude language doesn't persuade anybody and makes the conversation less enjoyable for fellow L.Dotters.
Reply 1 - Posted by:
Californian 1/17/2025 2:39:19 AM (No. 1875137)
Uh yeah... and?
My friend lost a car in a hurricane flood. Still had to pay it off.
That's how loans work. If you borrow money you have to pay it back even if you lost the thing you spent the loan money on. Any child can explain this.
46 people like this.
Reply 2 - Posted by:
Socio 1/17/2025 3:08:33 AM (No. 1875140)
At the very least property taxes should be re-assessed, since there is no longer structures on property, perhaps even replaced by a much cheaper "land tax" until a home has been re-built on the property.
52 people like this.
Reply 3 - Posted by:
NotaBene 1/17/2025 3:26:02 AM (No. 1875147)
We lost our beautiful home of 39 years. The main problem was that State Farm dropped our insurance in December. The Democrat California Fair plan had so many requirements that we could not possibly complete. We paid State Farm for 39 years. If one does not present a plan to rebuild the Proposition 13 tax protection goes away. Communism and a stupid baitfish got us here, Arghhh.
41 people like this.
Reply 4 - Posted by:
Kitty Myers 1/17/2025 5:28:59 AM (No. 1875176)
California just lost a chuck of their tax base.
18 people like this.
Reply 5 - Posted by:
Strike3 1/17/2025 5:39:01 AM (No. 1875183)
The state of California is flat broke and deep in debt due to government incompetence. They demand a federal bailout but the average homeowner can't do that?
18 people like this.
Reply 6 - Posted by:
petrichor 1/17/2025 6:37:43 AM (No. 1875215)
Mortgages need to be paid, but property should be reassessed. That means people in the same taxing disctrict who didn't lose their homes to fire will be paying more. Just end real estate taxes and tax people based on income. Seniors won't need to be paying higher and higher tax bills when they're retired.
16 people like this.
Aren't you the charitable type #1? What else you do like to do? Poke sticks into wheelchair wheels?
A car is a damn sight easier to replace than a house especially when infrastructure, permits, availability of contractors, environmental reviews etc. are taken into consideration. They're estimating 3-5 years before homes can be rebuilt. It will probably take longer, assuming they're allowed to rebuild at all.
8 people like this.
Reply 8 - Posted by:
felixcat 1/17/2025 8:22:15 AM (No. 1875277)
So are the homeowners in western North Carolina who lost their homes to the flood waters of Hurricane Helene getting any relief? From reputable journalists like Maria Bartiromo, the state of California for decades forced insurers to provide cheap home insurance even though the insurers were well aware of the various dangers. All to prop up the housing market in CA. I believe one stat was that homeowners in Fl on average pay 5 times the cost to ensure a comparable home as in CA. Insurers in FL have been aloud to adjust their rates in light of hurricanes, etc.
10 people like this.
Reply 9 - Posted by:
JHHolliday 1/17/2025 8:39:19 AM (No. 1875291)
Homeowners should have their property re-assessed, of course. All that's left is a vacant lot. The insurance settlement should be enough to cover the mortgage balance, or the house was way underinsured and that's the fault of the homeowner. The policy requires that your home must be insured to at least 80% of replacement cost. Even the FAIR plan covers fire and wind. I am not sure what the CA version covers as regards debris removal and additional living expense, which is covered under a standard homeowners policy. I am also irritated by the media continuously using the word "cancelled". An insurance company can't just simply cancel a policy mid-term. The can non-renew a policy when it comes up for renewal, but notice must be given in advance to allow the insured time to replace the coverage. This means that State Farm will still take massive losses from those policies still in effect.
6 people like this.
Reply 10 - Posted by:
PostAway 1/17/2025 8:44:35 AM (No. 1875295)
It would be far easier to sympathize with the people who lost their homes if they had also voted for rational leadership and insisted that steps be taken (close the border, get rid of DEI, clean brush from forest floors, hold legislators and town, county and state officials accountable) to avert a catastrophe. The fact that California is a wholly owned subsidiary of the radical left is its own indictment and I know of what I speak. My husband and I left his beloved native state 25 years ago because of the insanely high taxes, ridiculous rules, traffic congestion and the deterioration of our city, San Francisco. Other Californians continue to flee. It isn’t for State Farm or the citizens of other states to save fools from their folly. Anyone who takes out a loan for an uninsurable home is tempting fate whether the home is on a floodplain, fault line or wildfire zone.
17 people like this.
Reply 11 - Posted by:
hershey 1/17/2025 9:48:31 AM (No. 1875330)
Everyone has to repay a loan....except of course, if you are a student...then Biteme gives you a 'walk'...3 more days...3 more days...
9 people like this.
Reply 12 - Posted by:
LC Chihuahua 1/17/2025 10:35:19 AM (No. 1875364)
Don't ever think for a second that the banks, cities, and states will eat this. Remember 'Too big to fail'?
RE #3, too bad there isn't a way to regain part or all of the money you paid in insurance since they backed out. I assume the insurance companies are protected against anyone bringing a claim like that. Wondering if there is a class action lawsuit over this.
1 person likes this.
Reply 13 - Posted by:
snowoutlaw 1/17/2025 10:35:27 AM (No. 1875365)
People that actually lived in the homes should still still have their income and be able to make their payments but in areas like near the beach, many owners only invested in the homes for Airbnb and then paid the costs with the rents. These owners maybe forced out which would actually be a good thing. In any case if the loan costs more than the property is worth just walk away.
3 people like this.
Reply 14 - Posted by:
texaspast 1/17/2025 10:47:29 AM (No. 1875380)
That's the point of mortgage insurance. My lender required it. Theirs didn't?
5 people like this.
Reply 15 - Posted by:
bpl40 1/17/2025 10:54:29 AM (No. 1875386)
When you sign a mortgage and take possession of property that's what you agree to. It's in the fine print. That is how this country works. I am however, waiting for demands that equity dictates that certain privileged class should have their mortgages forgiven.
2 people like this.
Reply 16 - Posted by:
zephyrgirl 1/17/2025 10:58:05 AM (No. 1875391)
A horrible situation all around, and unfortunately, the people who are responsible - Gavin Newsome, the state legislature, the California Insurance bureaucracy, and the environmentalists cannot be sued. The ordinary people (like #3) and the insurance companies will take it in the shorts. I suspect the rest of us will as well.....
6 people like this.
Reply 17 - Posted by:
halfnorsk 1/17/2025 11:33:31 AM (No. 1875418)
That $750 FEMA check oughta clear up the problem.
4 people like this.
Reply 18 - Posted by:
Hermoine 1/17/2025 11:43:00 AM (No. 1875421)
Not sure why this is shocking...this is what happens in every disaster. Happening in NC. Also, with property taxes...I just paid property taxes on my property in Western NC where the house is a total loss. No relief...they even start the interest clock if you're late.
4 people like this.
Reply 19 - Posted by:
felixcat 1/17/2025 11:56:12 AM (No. 1875429)
I'd like to mention East Palestine, Ohio. Their houses may be standing but with all the toxins from the train derailment - you think they would be able to sell their homes for a decent price? The residents didn't vote in town officials who ignored their civic duties as they did in LA County. They had no control over that train derailing.
4 people like this.
Reply 20 - Posted by:
oldmagnolia 1/17/2025 11:59:19 AM (No. 1875432)
I wonder if they will continue voting for the democrats.
2 people like this.
Reply 21 - Posted by:
Vaquero45 1/17/2025 12:01:14 PM (No. 1875434)
I have a question for everybody in Los Angeles: what the hell did you think was gonna happen? The place is a tinderbox. Every last one of you knew it. State Farm knew it, too - that's why they didn't renew your homeowners policies, and stopped issuing new ones. The morons you voted for knew it - and stopped you from doing anything about it. They also stopped your insurance companies from doing anything about it. The firemen knew it - and the morons you voted for took their funding away, and appointed incompetent fools to run the fire department. The incoming President of the United States knew it, and warned the morons you voted for - but they didn't listen. Your mortgage companies knew it; that's why they required you to insure to value, and won't pay you unless you rebuild.
So, I have to ask you again: what the hell did you THINK was gonna happen?
You got what you voted for. Embrace the suck.
8 people like this.
Reply 22 - Posted by:
Aklon70 1/17/2025 3:19:34 PM (No. 1875599)
You bet they're going to collect taxes, taxes, and even more taxes. All those illegal aliens have got to be taken care of; the citizens run a poor third.
0 people like this.
Reply 23 - Posted by:
DVC 1/17/2025 11:07:19 PM (No. 1875907)
Adam Corolla says that a lot of LA folks are going to get red pilled when they try to rebuild their homes and find out that the leftist ecocrazies won't let them.
0 people like this.
Below, you will find ...
Most Recent Articles posted by "Imright"
and
Most Active Articles (last 48 hours)