← Updates & guides · 2026-10-14

California's new mortgage forbearance laws, explained in plain English

In September 2026, Governor Newsom signed two laws, AB 1842 and AB 1847, that change how mortgage forbearance works after disasters in California. They build on AB 238, the 2025 law for Los Angeles wildfire survivors. Here is what they say, who they may help, and the dates to know.

First, what is forbearance?

Forbearance is a pause or reduction in your mortgage payments for a set time. It is not forgiveness: the missed payments still have to be repaid later. What matters most is how you repay, and these laws add protections for that.

AB 238: the 2025 Los Angeles wildfire law

AB 238 was signed on September 22, 2025 (source: DFPI mortgage relief page). It lets borrowers affected by the January 2025 Los Angeles fires (Eaton, Palisades and the related windstorm) request up to 12 months of forbearance by affirming a financial hardship caused by the disaster. Under the current law, the request must be made by the earlier of six months after the state of emergency ends or January 7, 2027. Servicers cannot charge late fees or a default interest rate during the forbearance.

AB 1847: more time for LA fire survivors

AB 1847 (Chapter 242, Statutes of 2026) was signed September 15, 2026 (Governor's office, Sept. 15, 2026). It extends the maximum forbearance under the wildfire law from 12 to 24 months and moves the latest request deadline to January 7, 2029. Servicers must offer the option to move repaid amounts to the end of the loan term, unless investor rules prohibit it. Servicers get 21 days (or longer, as specified) to respond to a request, and no late fees or default interest may be charged while you wait.

Important change: AB 1847 also requires the borrower to affirm that the property is uninhabitable because of the wildfire. Under AB 238, a financial hardship was enough. If your home is livable but you had a fire-related hardship, the rules may be different for you after AB 1847 takes effect, so talk with a counselor soon. For extensions beyond 12 months, servicers may ask for documentation only in limited cases.

AB 1842: a permanent rule for future disasters

AB 1842 (Chapter 241, Statutes of 2026) creates a permanent statewide framework. If your home becomes uninhabitable as a direct result of a federally declared disaster, you may request forbearance by affirming that it is uninhabitable. Servicers must generally offer up to 180 days at first, extendable at your request in 90-day steps up to 12 months total. No late fees or default interest during forbearance, the account must be reported to credit bureaus as required under the federal Fair Credit Reporting Act, and foreclosure is barred while you are following the forbearance terms. Afterward, the servicer must offer at least one way to keep the home that does not require a lump-sum payment or a higher monthly payment than before.

As reported by legal analysts, the request generally must be made within six months of the disaster declaration. There is a safe harbor when the rules conflict with federal loan servicing guidelines (for example some FHA, VA, Fannie Mae or Freddie Mac loans).

Key dates

• Sept. 22, 2025: AB 238 signed.
• Sept. 15, 2026: AB 1842 and AB 1847 signed.
• Jan. 1, 2027: expected effective date for AB 1842 and AB 1847 (California's standard date for regular 2026 laws; we found no urgency clause, but please confirm).
• Jan. 7, 2027: latest request deadline under AB 238 as it reads today.
• Jan. 7, 2029: latest request deadline once AB 1847 is in effect.

How to ask for forbearance

Call your servicer, say you are requesting forbearance under California law because of the disaster, and ask them to confirm in writing. Keep notes of every call. A free HUD-approved counselor can help you make the request; see our free help page, or call HUD at 800-569-4287. In Los Angeles County, DCBA (800-593-8222) also helps. You can also read the state's guidance on the DFPI mortgage relief page.

These laws mostly help people affected by disasters. If you are behind for other reasons, see our options page and timeline.

What we could not confirm

We could not load the official bill pages on leginfo during our check, so some details come from the Governor's announcement, the bill digests and legal summaries. Before relying on any date, confirm it with your servicer, a HUD-approved counselor, or an attorney. No one may charge you upfront for loan modification or other mortgage relief services before all promised work is done (California Civil Code section 2944.7). If someone asks you to pay first, walk away and talk with a free HUD-approved counselor.

Informational only, not legal advice. This article is general information about California foreclosure and is not legal, tax, or financial advice. Laws and programs change, and every situation is different. Please confirm details with your servicer, a HUD-approved housing counselor, or a licensed attorney.