What to Do if Your Home was Burned or Destroyed in the California Wildfires

If you or your loved ones have been affected by the California wildfires, our hearts go out to you. In this time of hardship and loss, the C&S team sends our deepest sympathies and can only hope for a sense of calm and safety to be restored for you as soon as possible. Please find our answers to some of the most important questions you may have at this time regarding your home loan.

What is the process for homeowners whose home was fully or partially destroyed in the fires currently burning in CA?

  • Contact your  insurance company or agent

  • Contact your current mortgage servicer

  • Continue to make your monthly mortgage payments

Typical Process for handling the insurance claims and repairs or rebuilding (may vary by servicer):

  • Provide the Insurance Adjustors Report to your servicer

  • Provide an estimate for the repairs or construction

  • Insurance Claim checks will be payable to the borrowers and the mortgage company

    • Borrower will need to endorse the check and mail it to the mortgage company

    • The mortgage company will control the distribution of funds to the borrower or contractors

  • The borrower needs to hire a licensed, experienced, qualified contractor (watch out for fraud, be sure your contractor is licensed)

    • The plans for repairs or rebuilding must adhere to applicable codes and regulations governing residential repair or construction

    • The plans must be detailed and specific

  • The Servicer may require property inspections during the process

  • A final inspection will be required to ensure completion of the work

  • Final lien waiver will be required to release the final disbursement and finalize the claim

Mortgage Loan

  • Continue to make your mortgage payments

  • There will be no changes to your loan terms during or after the rebuilding process

Loss of Income

  • Contact the Employment of Development Department (EDD)

  • Contact your mortgage servicer and let them know of your situation

FAQs:

  1. What if the homeowner does not want to rebuild?  
    The insurance proceeds can be used to pay off the mortgage with the balance of the excess funds going to the borrower

  2. After repairs or the rebuild is complete, are there any restrictions on refinancing?  
    No, once the home is repaired/rebuilt the borrower can refinance or sell the property.

We appreciate you trusting us to help in this time of need. Please feel free to reach out to let us know if we can help in any way. 

Jennifer Hunker