Close Menu
Invest Intellect
    Facebook X (Twitter) Instagram
    Invest Intellect
    Facebook X (Twitter) Instagram Pinterest
    • Home
    • Commodities
    • Cryptocurrency
    • Fintech
    • Investments
    • Precious Metal
    • Property
    • Stock Market
    Invest Intellect
    Home»Property»Do L.A. Wildfire Victims Still Pay Property Taxes And Mortgages On Homes That Burned Down? Here’s What You Need To Know
    Property

    Do L.A. Wildfire Victims Still Pay Property Taxes And Mortgages On Homes That Burned Down? Here’s What You Need To Know

    January 21, 20254 Mins Read


    Wildfires have wreaked havoc across Los Angeles, leaving thousands of homes destroyed and families displaced. In addition to the emotional toll, many are left wondering what happens to their financial obligations. If your home was damaged or destroyed, do you still have to pay property taxes or your mortgage?

    Property Taxes: Are You Still On the Hook?

    As the LA Times reports, if your home was damaged or destroyed, the good news is that you can apply for temporary property tax relief. Los Angeles County offers a “Misfortune and Calamity” form that allows homeowners to request a reassessment. If your house is gone, its value will likely be reduced to zero. However, you’re still required to pay taxes on the land.

    Don’t Miss:

    Here’s the issue: Land in L.A. often makes up the majority of a property’s assessed value, especially in high-value areas like Malibu and Pacific Palisades. That means you could still owe 60% or more of your original taxes even with a reduced tax bill. Critics argue it’s unfair to tax unusable land, but for now, the law stands.

    California’s Proposition 8 allows for temporary tax reductions if your property value significantly decreases, but these reductions are only in place while your home is unlivable or damaged. Once you rebuild or the market recovers, your taxes will return to their previous levels.

    What About Prop 13?

    There’s some relief if you’re worried about losing your Prop 13 tax base. Under current rules, you can rebuild up to 120% of your original home’s value without triggering a reassessment. As a result, you can improve materials or add a bit more space without worrying about taxes going through the roof.

    See Also: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — you can become an investor for $0.80 per share today.

    Do You Still Have To Pay Your Mortgage?

    Unfortunately, yes. Even if your home has been reduced to ash, your mortgage lender still expects you to pay. The only exception might be if you’ve paid off your mortgage entirely.

    For those struggling to make payments, lenders often offer forbearance plans. These plans allow you to pause or reduce payments temporarily, but they’re not a free pass. Interest accumulates during forbearance and you’ll eventually have to repay it. This can sometimes result in higher overall costs due to compounding interest.

    If you have homeowners insurance, your policy may help cover some mortgage payments while you wait for claims to be processed. Still, the process can take time and missed payments can lead to foreclosure if you’re not proactive.

    Rebuilding Challenges and Costs

    Gov. Gavin Newsom has made it easier to rebuild a home after a wildfire by signing orders to speed up permits and control the prices of building supplies. While these measures aim to speed up recovery, many families find the cost of rebuilding too high. In such cases, selling the land and relocating may feel like the only viable option.

    Trending: Unlock the hidden potential of commercial real estate — This platform allows individuals to invest in commercial real estate offering a 12% target yield with a bonus 1% return boost today!

    Housing Market Impact

    The wildfires have also shaken the housing market. According to a Redfin report, home purchases in fire-affected areas typically drop by 38% in the three years following a disaster, while nearby areas see a smaller dip of 3%. With more properties hitting the market – many as vacant lots – prices often decline, further complicating recovery efforts for homeowners looking to sell.

    While temporary relief measures for property taxes and mortgage forbearance exist, these solutions often fall short of addressing the full scope of the financial burden. If you’re affected, act quickly: file for reassessments, contact your lender and explore rebuilding or relocation options.

    This information reflects current guidelines and may be subject to change. Always verify with local authorities and tax advisors for the most accurate and updated rules.

    Read Next:

    Market News and Data brought to you by Benzinga APIs

    © 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

    Related Posts

    UK family home for sale for £1 and it’s not far from the city centre or beautiful beaches

    Property

    Primaris Real Estate Investment Trust : National Bank conserve son opinion neutre

    Property

    Climate change and property – solicitors’ questions answered

    Property

    Heiwa Real Estate REIT émet de nouvelles parts par attribution à un tiers pour financer des acquisitions d’actifs

    Property

    Sime Darby Property et SD Guthrie signent un accord de coentreprise pour développer jusqu’à 2 000 acres à Carey Island

    Property

    Les actionnaires liés à Murakami portent leur participation conjointe dans Heiwa Real Estate Co à 10,39 %

    Property
    Leave A Reply Cancel Reply

    Top Picks
    Property

    En 2024, il s’est vendu chaque mois 135 biens à plus d’un million d’euros

    Cryptocurrency

    How To Identify And Avoid Them

    Cryptocurrency

    Crypto prices tumble as Trump-fuelled euphoria fades

    Editors Picks

    Concert: Du métal explosif avec Heilung à la Rockhal: tente ta chance!

    March 9, 2025

    Fasttoken’s Innovative Blockchain: Proof of Stake and Activity Explained | Partner Content | Fastex Harmony Meetup 2024 Video

    July 18, 2024

    CBUAE Unveils New Symbol for the UAE Dirham and Advances Digital Currency Initiative – Business – Economy and Finance

    March 27, 2025

    June real estate inventory in Charlotte Co. lowers as sellers pull listings

    July 26, 2024
    What's Hot

    Gold/Silver: Crude oil & precious metals drop overnight! The week ahead – Metals Minute w/ Phil Streible

    October 28, 2024

    Usine Les Bronzes d’Industrie : Explosion et incendie font 4 blessés

    April 17, 2025

    Montana’s annual Clean Energy Fair

    August 24, 2024
    Our Picks

    New modeling approach for sustainable agriculture

    August 26, 2024

    Aeon Integrates With Tron to Streamline Crypto Payments

    October 14, 2024

    Les Philippines lèvent 432 millions de dollars en proposant des T-bonds -Le 25 février 2025 à 06:09

    February 24, 2025
    Weekly Top

    La première place pour les électriques à l’EcoGreen Energy 2025

    June 21, 2025

    Gold Cup | Le onze probable du Canada

    June 21, 2025

    Here Are My Top 3 High-Yield Energy Dividend Stocks to Buy Now

    June 21, 2025
    Editor's Pick

    Ohio’s property tax crisis is festering. There are solutions.| Opinion

    March 21, 2025

    UK property prices surge to new record high

    April 13, 2025

    Cette jardinière VidaXL très prisée au printemps est à prix réduit sur Amazon

    March 18, 2025
    © 2025 Invest Intellect
    • Contact us
    • Privacy Policy
    • Terms and Conditions

    Type above and press Enter to search. Press Esc to cancel.