Home Loan Answers for Those Affected by the California Fires

The fires in the state of California have proven devastating to so many of our families, friends, clients, and employees.

As the firefighters continue the battle to save homes and businesses alike, those that have lost or sustained damaged to their homes are beginning to ask questions about their home loans, process for handling insurance claims, or loss of income due to a destroyed business.

We’ve put together a brief blog allowing each of you to better answer some of these tough and heart wrenching questions.

From all of us at US Lending, stay safe!

California Wildfires:

Click here to view a current map of the fires.

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 you 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
  • 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)
    • Edd.ca.gov
  • Contact your mortgage servicer and let them know of your situation
  • Contact Keep Your Home California


  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.

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For loan examples and more information visit our disclosure page at https://www.uslendingcompany.com/disclosures/