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If you lost your home in a wildfire, what happens to your mortgage?

LOS ANGELES (KTLA) – If you’re among the thousands of Los Angeles County residents whose homes were damaged or destroyed in the Palisades or Eaton wildfires, there is a grim reality beyond the loss of property alone: your mortgage is still due.

So is a large portion of your property tax.

KTLA’s David Lazarus spoke with Los Angeles County Tax Assessor Jeff Prang on Monday about the real estate implications of losing a home to a wildfire. It is a mix of good news – and bad.

“We’re going to reduce your assessment and your property taxes,” said Prang. “Unfortunately, this reduction doesn’t apply to the land.”

For an average home in the wildfire zones, Lazarus points out that two-thirds of the property’s assessed value is the land itself and not the house. Prang encourages fire victims to register for Misfortune and Calamity Tax Relief through the assessor’s website.

Regarding the mortgage, Lazarus said, unfortunately for fire victims, “a deal is a deal.” He equates losing a home to a wildfire to having a new car stolen the day after driving it off the lot.

“You’re still on the hook for the financing payments,” said Lazarus.

He recommends fire victims contact their mortgage server to work out a deferred payment schedule, which could potentially delay payments for months or even years.

“But ultimately, you will have to pay for that loan,” he said.

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