As firefighters gain the upper hand in their battle with the wildfires that have devastated Los Angeles, families are starting to pick up the pieces. For people who have lost loved ones or their homes, the costs are incalculable.
The Palisades Fire has burned more than 23,000 acres and destroyed at least 10,000 structures, while the Eaton Fire has scorched 14,000 acres and destroyed around 7,000 structures. Tragically, at least 24 people are confirmed dead.
While it’s too early to estimate a full price tag for the property damage, the wildfires are shaping up to be one of if not the most expensive natural disasters in U.S. history. Against this backdrop, two of the largest U.S. banks—JPMorgan Chase and Bank of America—are launching programs to provide impacted homeowners with mortgage forbearance. Fannie Mae and Freddie Mac are also offering mortgage relief.
How to request Chase mortgage forbearance
Mortgage forbearance programs let borrowers temporarily pause or reduce their mortgage payments. They still owe the full amount of the loan, and any reduced payments in the near term are paid back later in the loan’s term.
Chase’s forbearance period will initially last for three months with the potential to extend it in three-month increments up to a maximum of 12 months. Once a borrower requests forbearance, the bank will review the request within two business days—and protections are set up immediately, according to a Chase spokesperson. These include fee protection, foreclosure protection, and no negative credit reporting.
If a customer needs further payment relief after a maximum of 12 months of disaster forbearance, Chase will consider their individual situation. Options could include more forbearance, loan modifications, a short sale, or a deed-in-lieu.
Chase provided Fortune with the following statement: “Our thoughts are with everyone impacted by the devastating wildfires in Southern California, and the heroic first responders working to contain them. Chase Home Lending is supporting mortgage customers affected by the wildfires by offering disaster forbearance.”
If you are a homeowner impacted by the wildfires and have a Chase mortgage, visit this Chase website for more information and answers to frequently asked questions. You can call the Chase Special Care Line at 1-800-254-7713 to start a forbearance request.
How to request financial assistance from Bank of America
Bank of America has a Client Assistance Program that is activated during natural disasters, according to a spokesperson. This program is now live due to the Southern California wildfires, and the bank has reached out to more than 2.5 million clients in the area to let them know it’s available.
Customers can call 855-729-1764 or type “wildfires” in the Bank of America mobile app to get started with help from ERICA, the bank’s virtual assistant.
Depending on your unique situation you may be able to request assistance such as mortgage forbearance, leniency on a missed credit card payment, or help with small business loan payments if your business couldn’t operate because it’s located in an evacuation zone, as a few examples.
Resources from Fannie Mae and Freddie Mac
Fannie Mae and Freddie Mac are government-sponsored enterprises created by Congress. They buy a large number of mortgages in the U.S. from the lenders that originate them. Both companies put out news releases earlier this week to remind homeowners about the mortgage relief resources available.
To get disaster recovery counseling from Fannie Mae, homeowners and renters can call 855-HERE2HELP (855-437-3243). There’s also a dedicated resources page on Fannie Mae’s website.
Freddie Mac recommends contacting your mortgage servicer, and notes that if your mortgage is owned by Freddie Mac, you may be eligible for relief for up to 12 months without incurring late fees or penalties. There is a page on Freddie Mac’s website dedicated to recovery after a natural disaster as well.
Additional information about the wildfire recovery efforts
Bank of America has committed $2 million to relief efforts as of Wednesday, according to a company spokesperson. The first $1 million is earmarked for the American Red Cross and $500,000 each is set for the Los Angeles Regional Food Bank and a small business relief fund announced by the Los Angeles Area Chamber of Commerce.
Wells Fargo has contributed $1.3 million toward relief efforts as well through the Wells Fargo Foundation. A spokesperson for the bank shared a statement with Fortune:
“Initial beneficiaries include the American Red Cross, the California Community Foundation’s Wildfire Recovery Fund, the Pasadena Community Foundation’s Eaton Canyon Fire Relief and Recovery Fund, and the Los Angeles Fire Department Foundation. In the coming days, additional donations will support small business recovery efforts.”
In terms of homeowners seeking mortgage assistance, the spokesperson noted that customers who have suffered property damage should first file a claim with their homeowners insurance, and could then call 1-888-818-9147 to speak to Wells Fargo’s disaster assistance team.
Learn more: IRS extends tax deadline for those affected by California wildfires.
