The U.S. Department of Housing & Urban Development (HUD) has announced a 90-day extension of its foreclosure moratorium on Federal Housing Administration (FHA)-insured single-family mortgages in the areas of Los Angeles County, California, devastated by the January 2025 wildfires.
HUD Secretary Scott Turner made this announcement while touring a disaster zone in Altadena with Fifth District of Los Angeles Supervisor Kathryn Barger. The FHA-insured single-family mortgage extension underscores HUD’s commitment to supporting Americans impacted by natural disasters by providing flexibility to families in the Presidentially Declared Major Disaster Area (PDMDA).
According to reports, there are more than 100,000 FHA-insured mortgages in Los Angeles County PDMDA. HUD is working with mortgage servicers and others to assess the extent of properties with FHA-insured mortgages in the designated area that have been severely damaged or destroyed.
“It is heartbreaking to witness the devastation caused by the horrific wildfires in Altadena and the surrounding areas of Los Angeles County and the heavy toll of this tragedy on individuals, families and communities,” said HUD Secretary Turner. “Empowering and supporting our neighbors so they can build or rebuild their future, including when disaster strikes, is a core part of HUD’s mission and we will continue providing help during hardship.”
The moratorium prohibits mortgage servicers from initiating or completing foreclosure actions on FHA-insured single-family forward or Home Equity Conversion Mortgages (HECMs) in the Los Angeles County PDMDA through July 7, 2025. The moratorium was originally set to expire on April 8, 2025.
A Lifeline to Survivors
“HUD’s extension of the foreclosure moratorium is a lifeline for wildfire survivors in Los Angeles County who are facing immense hardship,” said Los Angeles County Supervisor Barger. “I appreciate Secretary Turner’s leadership and commitment to ensuring that families impacted by these devastating fires have the time and support they need to recover. This critical relief will help stabilize our communities as we work together to rebuild and heal.”
For borrowers whose homes are destroyed or damaged to an extent that requires reconstruction or complete replacement, contact an FHA-approved lender about FHA’s Section 203(h) loan program. This program provides 100% financing for eligible homeowners to rebuild their home or purchase a new one.
For borrowers seeking to purchase and/or repair a home that has been damaged, the FHA’s Section 203(k) loan program allows individuals to finance the purchase or refinance of a house, as well as the costs of repair or renovation, through a single mortgage.
Measuring the Finals Costs
According to a UCLA Anderson Forecast analysis, the two biggest disasters that devastated Los Angeles County may have resulted in between $95 and $164 billion in total property and capital losses, with an estimated $75 billion in insured losses. Economists Zhiyun Li and William Yu found a 0.48% decline in county-level GDP in 2025, or around $4.6 billion.
The City of Los Angeles saw the most devastating wildfires in its history in January 2025. Due to intense Santa Ana winds and extremely dry conditions, a number of wildfires have devastated LA County since January 7, burning 55,082 acres. With 23,400 and 14,000 acres burned, respectively, the Palisades and Eaton Fires caused the most damage. Over 16,240 buildings have been destroyed and at least 28 people have died as a result of the fires thus far. An initial estimate of the massive losses and economic cost of these destructive wildfires is presented in the report.
It has been estimated that local businesses and employees in the affected areas could face a total wage loss of $297 million.
Without substantial and effective wildfire mitigation efforts and investments, Californians will face increasingly higher insurance premiums and growing health risks from wildfire-related pollution.
