Quick Answer
The original California Mortgage Relief Program is closed — it distributed over $900 million to 37,000+ households before exhausting its funds in mid-2025. But California homeowners have more relief options in 2026 than ever before.
What’s available now:
- CalAssist Mortgage Fund: Up to $100,000 in free grants for disaster-affected homeowners (expanded Feb 2026)
- AB 238: Guaranteed 12 months of mortgage forbearance for wildfire survivors
- FHA, VA, Fannie/Freddie: Loan modifications, forbearance, and partial claims still available
- Free HUD counseling: Call (800) 569-4287 — always free, never a fee
NEVER pay anyone upfront for mortgage relief help — it’s illegal in California (SB 94).
Key Takeaways
- Original CAMRP is closed: Distributed $900M+ to 37,000+ households before funds ran out in mid-2025
- CalAssist Mortgage Fund is ACTIVE: Up to $100,000 in free grants (expanded from $20K in Feb 2026)
- AB 238: 12 months of guaranteed forbearance for wildfire survivors — no documentation required
- 160+ lenders have committed to relief beyond AB 238’s requirements
- FHA, VA, Fannie/Freddie all offer loss mitigation: modifications, partial claims, forbearance
- CA Homeowner Bill of Rights: Prohibits dual tracking — servicers can’t foreclose while reviewing your application
- Foreclosure timeline: Minimum 4–7.5 months in California (nonjudicial process)
- NEVER pay upfront fees for mortgage relief — it’s illegal under SB 94
- Free help: HUD counselors at (800) 569-4287, HOPE Hotline at (888) 995-4673 (24/7)
If you’re searching for “California Mortgage Relief Program,” you’re probably in one of two situations: you’re behind on your mortgage and need help, or you’re worried about falling behind.
Here’s what you need to know right now:
The COVID-era California Mortgage Relief Program is closed. But that doesn’t mean help isn’t available. California homeowners in 2026 actually have more relief options than during the pandemic — including the newly expanded CalAssist Mortgage Fund offering up to $100,000 in free grants, AB 238 wildfire forbearance protections, and federal loss mitigation programs through FHA, VA, and Fannie Mae/Freddie Mac.
This guide covers every program, protection, and resource available to struggling California homeowners — plus how to avoid the scammers who prey on people in financial distress.
Let’s start with what’s closed, what’s open, and what to do next.
The Original California Mortgage Relief Program (Closed)
The California Mortgage Relief Program (CAMRP) was a grant program administered by the CalHFA Homeowner Relief Corporation (CalHRC). Funded by approximately $1 billion from the Homeowner Assistance Fund under the American Rescue Plan Act — the largest HAF allocation of any state — it launched on December 27, 2021.
The program is no longer accepting applications as of mid-2025.
CAMRP by the Numbers
- $900+ million distributed in housing assistance
- 37,000+ California households helped
- 55% of grants went to socially disadvantaged communities
- 75% of recipients were at or below 100% AMI
- 902 imminent foreclosures prevented
- Average grant: ~$25,000 (maximum $80,000 per household)
- Assistance was a grant — never needs to be repaid
What CAMRP Covered
- Past-due mortgage payments (principal, interest, taxes, insurance, escrow shortages) — full reinstatement to “current” status
- Delinquent property taxes — up to $20,000 per household (available to mortgage-free homeowners too)
- Partial claims and loan deferrals established after January 2020
- Reverse mortgage arrears (taxes and force-placed insurance on HECM loans)
- PACE (Property Assessed Clean Energy) loans
Why Applications Were Denied
The most common denial reasons were: income exceeding 150% AMI, excessive liquid assets, fewer than 2 missed payments, no documented pandemic hardship, property not a primary residence, past-due amount exceeding $80,000, and incomplete documentation within the 30-day window.
Pro Tip: If you were denied or missed the CAMRP window, don’t give up. The programs below may help — especially CalAssist (if disaster-affected) and federal loss mitigation options through your loan servicer.
CalAssist Mortgage Fund: California’s Active Disaster Relief Program
Governor Newsom launched the CalAssist Mortgage Fund on June 5, 2025. Administered by CalHFA using $105 million from National Mortgage Settlement funds, it serves homeowners whose primary residences were destroyed or made uninhabitable by qualifying California disasters.
CalAssist Is Open Now — Apply Today
Up to $100,000 in free grants (expanded from $20,000 in February 2026)
Apply at: CalAssistMortgageFund.org
Phone: 800-501-0019 (Mon–Fri, 8 AM–5 PM)
This is a grant — it never needs to be repaid.
Major February 2026 Expansion
On February 12, 2026, the program was dramatically expanded:
| Feature | Before Feb 2026 | After Feb 2026 |
|---|---|---|
| Maximum assistance | $20,000 | $100,000 |
| Months of coverage | 3 months | 12 months |
| Already received 3 months? | — | Apply for 9 more |
Income limits (examples):
- Los Angeles County: up to $281,400
- Orange County: up to $360,000
- San Bernardino/Riverside: up to $274,300
- Butte County: up to $255,000
Who Qualifies for CalAssist
- Primary residence destroyed or severely damaged/uninhabitable by a qualifying disaster
- Disaster occurred between January 1, 2023 and January 8, 2025
- Must have a mortgage or reverse mortgage
- Can own only one residential property
- Must have been current on mortgage the month before the disaster
- Homeowners who are current, in forbearance, or behind on payments all qualify
- Recipients of FEMA or other assistance remain eligible
How to Apply
- Go to CalAssistMortgageFund.org
- Gather: mortgage statements, income documentation, proof of property damage
- You have 60 days to complete the application
- Applications reviewed first-come, first-served
- Funds paid directly to your mortgage servicer
- If denied, you can appeal within 30 days or reapply
CalAssist Progress (as of Feb 12, 2026)
- $6.5 million paid to 793 recipients
- Vast majority are Palisades and Eaton fire survivors
- Significant funding remains from the $105 million pool
LA Wildfire Mortgage Relief: A Multi-Layered Response
The January 2025 LA wildfires (Palisades Fire, Eaton Fire) damaged or destroyed approximately 11,000 residential properties valued at $51.7 billion. California’s response created overlapping layers of protection.
AB 238: The Mortgage Forbearance Act
Signed into law by Governor Newsom on September 22, 2025, AB 238 mandates mortgage forbearance for wildfire-affected homeowners.
AB 238 Key Protections
- Initial 90 days of forbearance, extendable up to 12 months total
- Covers residential loans on properties with 4 or fewer units
- Borrowers only need to verbally affirm hardship — no documentation required
- Servicers must respond within 10 business days
- Prohibited: Late fees, default-rate interest, balloon payments, foreclosure, negative credit reporting
Lender Commitments
- January 18, 2025: 5 major lenders (Bank of America, Citi, JPMorgan Chase, U.S. Bank, Wells Fargo) committed to 90-day forbearance
- January 23, 2025: 420+ institutions total joined
- February 5, 2026: 160+ lenders committed to relief beyond AB 238 — offering additional 90-day forbearance, waived late fees, no negative credit reporting, and new lending products for LA firestorm recovery
SBA Disaster Loans (DR-4856-CA)
| Loan Type | Maximum | Interest Rate | Term |
|---|---|---|---|
| Home disaster loans (repair/replace) | $500,000 | As low as 2.563% | Up to 30 years |
| Personal property loans | $100,000 | As low as 2.563% | Up to 30 years |
| Business physical disaster loans | $2 million | As low as 4% | Up to 30 years |
Interest does not begin accruing until 12 months from first disbursement. Loan drawdown deadline: June 30, 2026.
Apply: sba.gov/disaster or call (800) 659-2955
FEMA Assistance (DR-4856-CA)
- Maximum individual assistance: approximately $44,000 (grants, not loans)
- Application deadline has passed (March 31, 2025)
- By June 2025: $3+ billion total FEMA/SBA combined; 31,941 households approved
Federal Agency Disaster Programs
Fannie Mae/Freddie Mac: Up to 12 months of forbearance with no late fees, foreclosure suspension, and no negative credit reporting. Post-forbearance options include payment deferral, repayment plans, and loan modification. Disaster counseling: 855-HERE2HELP (855-437-3243).
FHA: Up to 12 months of payment forbearance. FHA 203(h) loans offered disaster victims 100% financing (no down payment) with minimum credit score of 500.
VA: 90-day foreclosure pauses and waived late fees. New VA Partial Claim Program (signed July 30, 2025) allows veterans to defer delinquent payments as a non-interest-bearing subordinate lien — expected to help 60,000–80,000 veteran homeowners.
Federal Mortgage Relief Options for California Homeowners
FHA Loss Mitigation (Updated October 2025)
HUD implemented a new permanent loss mitigation framework replacing expired COVID-era options. The current waterfall:
- Repayment plan — gradually repay arrears through increased monthly payments
- Special forbearance — temporary pause/reduction of payments
- Standalone partial claim — past-due amounts placed in interest-free subordinate lien (max 30% of unpaid principal balance); no monthly payments; repaid only at sale/payoff/maturity
- Standalone loan modification — permanent term changes; can extend to 40 years; requires 3–4 month trial period
- Combination modification + partial claim
- Payment supplement — uses partial claim to temporarily reduce payments for 3 years
Borrowers limited to one permanent loss mitigation option every 24 months (unless disaster-impacted). Contact: (800) CALL-FHA (1-800-225-5342).
VA Loan Relief Options
- Forbearance: Typically 3–4 months; VA provides incentives to lenders
- Loan modification: Term extension up to 40 years
- VA IRRRL: Streamline refinance (no appraisal needed, minimal documentation, 0.5% funding fee)
- New VA Partial Claim Program (July 2025): Up to 25% of unpaid balance as non-interest-bearing lien; one-time use per loan
- Contact VA Loan Technician: (877) 827-3702
Fannie Mae and Freddie Mac Flex Modification
- Target: 20% reduction in principal and interest payment
- Steps: capitalize arrears → reduce interest rate → extend term up to 40 years → forbear principal
- Current modification rate: 6.250% (as of November 2025)
- For borrowers 90+ days delinquent: no documentation required; servicers must proactively review between 90–105 days
- Trial period: 3–4 months then permanent modification
- Payment deferral also available: defers 2–6 months of past-due payments as non-interest-bearing lien
- Check loan ownership: fanniemae.com or freddiemac.com lookup tools
USDA Loss Mitigation
Updated April 14, 2025. Options include: informal repayment agreement, special forbearance (up to 12 months), loan modification (term up to 40 years), Mortgage Recovery Advance, and pre-foreclosure sale. Contact: (866) 550-5887.
Which Federal Program Applies to You?
Check who owns your loan: FHA (HUD insured), VA (VA guaranteed), Fannie Mae (fanniemae.com lookup), Freddie Mac (freddiemac.com lookup), or USDA (USDA insured). Each has different loss mitigation options. Your mortgage servicer can tell you.
California-Specific State Protections
California Homeowner Bill of Rights (HBOR)
Originally enacted 2013, permanently reinstated by SB 818 (2018). Applies to first-lien loans on owner-occupied 1–4 unit properties.
Your Rights Under HBOR
- Dual tracking prohibition: Servicers CANNOT pursue foreclosure while evaluating your complete modification application
- Single point of contact: Your servicer must provide a dedicated contact with access to decision-makers
- Pre-foreclosure contact: Servicer must contact you at least 30 days before recording Notice of Default
- Written denial with appeal: If modification denied, you get reasons and 30 days to appeal
- Transfer protections: New servicer must honor approved modification terms
- Enforcement: Treble damages or $50,000 for intentional violations; attorney’s fees for prevailing borrowers
California Foreclosure Timeline
California is primarily a nonjudicial foreclosure state — most foreclosures proceed without court oversight through the trustee sale process:
| Stage | Timeframe |
|---|---|
| Missed payment | Day 1 |
| Pre-foreclosure contact required | Day 1–90 |
| Federal 120-day rule (CFPB) | Day 120 minimum before initiating foreclosure |
| Notice of Default (NOD) recorded | ~Day 120+ |
| Cure/reinstatement period | 90 days after NOD |
| Notice of Trustee Sale (NTS) | After 90-day cure period |
| Trustee sale/auction | At least 21 days after NTS |
Minimum timeline: approximately 4–7.5 months, but often longer due to loss mitigation processes. Borrowers can reinstate the loan up to 5 business days before the scheduled sale by paying all arrears plus costs.
Recent Legislation
- AB 2424 (effective Jan 1, 2025): Borrowers can postpone trustee sale by 45 days by submitting a valid MLS listing agreement; additional 45-day postponement with a bona fide purchase agreement; minimum bid threshold of 67% of fair market value
- AB 130 (signed June 30, 2025): Protections against “zombie” second mortgage foreclosures
Deficiency Judgment Protections
California has among the strongest deficiency protections in the nation:
- CCP § 580b: No deficiency on purchase money loans
- CCP § 580d: No deficiency after nonjudicial foreclosure (trustee sale) on any loan
- CCP § 580e: No deficiency after lender-approved short sale on 1–4 unit dwellings
County-Level Programs
LA County Mortgage Relief Program: $5.5 million initiative providing grants up to $30,000 for missed mortgage payments. Eligibility: LA County residents (City of LA residents NOT eligible), owner-occupied, up to 80% AMI for 1-unit or 150% AMI for 2–4 units. Requires Foreclosure Prevention Workshop attendance.
General Mortgage Relief Strategies
Forbearance: How It Works
Forbearance is a temporary agreement to pause or reduce payments. It does not erase debt — missed payments must eventually be repaid.
But here’s the key:
For federally backed loans, you will NOT be required to make a balloon/lump-sum payment when forbearance ends. Your post-forbearance options include:
- Reinstatement — pay all at once (if you can)
- Repayment plan — spread across future months
- Payment deferral — move missed payments to end of loan as non-interest-bearing lien
- Loan modification — permanently change loan terms
- Forbearance extension — if still in hardship
Pro Tip: Request forbearance before you miss payments. This protects your credit score and gives you more options. Under AB 238 (wildfire) and the CARES Act (COVID), no negative credit reporting is allowed.
Loan Modification Types
- Interest rate reduction: Lower rate to reduce payments (temporary or permanent)
- Term extension: Extend to up to 40 years
- Principal forbearance: Set aside a portion of principal as non-interest-bearing balloon
- Principal reduction: Actual forgiveness of principal (rare for first mortgages)
- Loan type conversion: ARM to fixed-rate
- Capitalization: Add arrears to principal and recalculate
Refinancing After Hardship
Waiting periods after forbearance:
- Conventional loans: typically 3 months of on-time payments
- FHA: generally 3 consecutive on-time payments
- VA: no specific waiting period
Streamline options include FHA Streamline Refinance, VA IRRRL, and Fannie Mae/Freddie Mac high-LTV refinance options. Use our Refinance Calculator to evaluate potential savings.
Bankruptcy Protections
Chapter 13 is generally preferred for homeowners wanting to keep their home — it allows curing mortgage arrears over 3–5 years. Filing triggers an automatic stay halting all foreclosure proceedings immediately.
California homestead exemption (2025): Ranges from $361,076 to $722,507 depending on county median home price. Los Angeles County: approximately $722,151. These are among the most generous in the nation.
How to Spot Mortgage Relief Scams
This section could save you thousands of dollars.
Scammers specifically target homeowners in financial distress. The most common scheme: companies demanding $500–$5,500+ before performing any work. This is illegal under both federal law and California’s SB 94.
Scam Red Flags
1. Demands upfront payment. It is ILLEGAL in California (SB 94) for anyone — including attorneys — to collect advance fees for loan modification or forbearance services.
2. Asks for payment via wire or gift cards. No legitimate organization requests payment this way.
3. Asks for deed transfer. Never sign your property over to anyone claiming they’ll save your home.
4. Tells you to stop paying your mortgage or contacting your lender. This is designed to accelerate your foreclosure.
5. Guarantees a specific outcome. No one can guarantee a modification will be approved.
6. Pressures immediate action. Legitimate programs give you time to decide.
Recent Enforcement
Home Matters USA (LA-based) received a $19 million penalty in a joint FTC/CA-DFPI action (2024) for defrauding 3,000+ people. Other common scams include forensic audit schemes, phantom help/impersonation, and mass joinder lawsuit schemes.
California-Specific Protections
- SB 94 (2009): Prohibits ANY person from collecting advance fees for modification/forbearance services. Violation is a misdemeanor.
- Foreclosure consultant registration: Must register with the AG and post a $100,000 bond
- CA DFPI: Licenses and regulates mortgage lenders/servicers — verify at dfpi.ca.gov
Free Legitimate Help — Always
HUD-approved housing counselors are always free. Find one at consumerfinance.gov/find-a-housing-counselor or call (800) 569-4287.
Report scams to: CFPB (consumerfinance.gov/complaint), CA Attorney General (800-952-5225), FTC (ReportFraud.ftc.gov), or DFPI (866-275-2677).
Key Contacts Quick Reference
| Resource | Phone | Website |
|---|---|---|
| CalAssist Mortgage Fund | 800-501-0019 | CalAssistMortgageFund.org |
| HUD Housing Counseling | (800) 569-4287 | hud.gov/findacounselor |
| HOPE Hotline (24/7) | (888) 995-4673 | — |
| FHA Resource Center | (800) 225-5342 | hud.gov/answers |
| VA Loan Technician | (877) 827-3702 | va.gov |
| Fannie Mae | (800) 232-6643 | fanniemae.com |
| Fannie Mae Disaster Help | 855-437-3243 | fanniemae.com/HERE2HELP |
| USDA Servicing Center | (866) 550-5887 | rd.usda.gov |
| SBA Disaster Loans | (800) 659-2955 | sba.gov/disaster |
| CFPB | (855) 411-2372 | consumerfinance.gov |
| CA DFPI | (866) 275-2677 | dfpi.ca.gov |
| CA Attorney General | (800) 952-5225 | oag.ca.gov |
| CalHFA | (877) 922-5432 | calhfa.ca.gov |
| HERA (legal aid) | — | heraca.org |
| LawHelpCA | — | lawhelpca.org |
Legal Aid Resources
- Housing and Economic Rights Advocates (HERA): The only California statewide nonprofit law office dedicated to mortgage lending, servicing, and foreclosure issues (heraca.org)
- LawHelpCA: Statewide portal connecting to legal aid (lawhelpca.org)
- California Courts Self-Help Guide: selfhelp.courts.ca.gov/foreclosures
- Key organizations: Legal Aid Foundation of LA, Bay Area Legal Aid, Inland Counties Legal Services, Legal Aid Society of San Diego
Frequently Asked Questions
Is the California Mortgage Relief Program still available?
The original COVID-era program is closed as of mid-2025. It distributed $900+ million to 37,000+ households. The CalAssist Mortgage Fund is currently active for disaster-affected homeowners, offering up to $100,000 in free grants. Apply at CalAssistMortgageFund.org.
How much money can I get from CalAssist?
Up to $100,000 (covering up to 12 months of mortgage payments). This was expanded from $20,000 in February 2026. If you already received 3 months of assistance, you can apply for 9 additional months. CalAssist is a grant — it never needs to be repaid.
Who qualifies for CalAssist?
Homeowners whose primary residence was destroyed or made uninhabitable by a qualifying California disaster between January 1, 2023 and January 8, 2025. You must have a mortgage, own only one residential property, and have been current on your mortgage the month before the disaster. Income limits vary by county (e.g., LA County: up to $281,400).
Does mortgage relief affect my credit?
Grant programs (CAMRP, CalAssist) pay servicers directly to bring accounts current — this should not negatively impact your credit. AB 238 forbearance explicitly prohibits negative credit reporting. Standard forbearance may impact credit depending on servicer reporting, but is always less damaging than foreclosure.
Can I get help if I’m not behind on payments?
Yes. CalAssist explicitly accepts homeowners who are current, in forbearance, or behind on payments. For general forbearance, you can request it before missing payments to protect your credit. Contact your servicer proactively.
What happens after forbearance ends?
For federally backed loans, you will NOT be required to make a balloon/lump-sum payment. Options include: repayment plan (spread over future months), payment deferral (move to end of loan as non-interest-bearing lien), loan modification (permanently change terms), forbearance extension, or refinance.
Is the assistance a grant or a loan?
Both the original CAMRP and CalAssist are grants — no repayment required. Recipients receive a 1099-G tax form and should consult a tax professional about potential tax implications.
What if I was denied by the original program?
If you were denied or missed the CAMRP window, you still have options: CalAssist (if disaster-affected), federal programs through your loan servicer (FHA, VA, Fannie/Freddie modifications and partial claims), free HUD counseling at (800) 569-4287, and the HOPE Hotline at (888) 995-4673.
How long does the foreclosure process take in California?
The minimum timeline is approximately 4–7.5 months through the nonjudicial (trustee sale) process. It often takes longer due to loss mitigation reviews. The California Homeowner Bill of Rights prohibits servicers from pursuing foreclosure while evaluating a complete modification application (dual tracking ban).
Should I pay a company to help me get a loan modification?
No. It is illegal in California (SB 94) for anyone — including attorneys — to collect upfront fees for loan modification or forbearance services. HUD-approved housing counselors provide the same help for free. Call (800) 569-4287 for a free counselor referral.
Your Next Steps
Which Program Fits Your Situation?
- Home destroyed/damaged by disaster (2023–2025)? Apply for CalAssist at CalAssistMortgageFund.org (up to $100K grant)
- LA wildfire survivor? Request AB 238 forbearance from your servicer (up to 12 months) AND apply for CalAssist
- Behind on payments (non-disaster)? Contact your servicer for loss mitigation options (modification, partial claim, forbearance)
- Not sure what to do? Call a free HUD counselor at (800) 569-4287 — they can review all your options
- Facing foreclosure? You have rights under the CA Homeowner Bill of Rights. Call HERA (heraca.org) or LawHelpCA (lawhelpca.org) for free legal help
Your action checklist:
- Determine which type of hardship you’re facing (disaster, income loss, medical, etc.)
- Find out who owns your loan (FHA, VA, Fannie, Freddie, or private) — ask your servicer
- If disaster-affected, apply for CalAssist at CalAssistMortgageFund.org
- Contact your servicer to discuss loss mitigation options BEFORE you miss payments
- Call a free HUD counselor at (800) 569-4287 for personalized guidance
- NEVER pay anyone upfront for mortgage relief assistance
- Document everything — keep records of all communications with your servicer
Related Calculators
Helpful Resources
- California First-Time Homebuyer Programs — 100+ assistance programs if you’re looking to buy after recovery
- California Property Tax Guide — Prop 13 protections, Mello-Roos, and effective tax rates
- California Closing Costs Guide — What to budget if refinancing
- California VA Loan Guide — VA-specific relief options and the new VA Partial Claim Program
- Today’s Mortgage Rates — Daily rate updates from Federal Reserve data
- Mortgage Rates Guide — How rates work and what drives them
About Jon Teera
Jon Teera is the Lead Developer and Founder of CalcLogix. He builds tools that help homebuyers navigate California’s complex housing market — because understanding the true cost of homeownership shouldn’t require a finance degree.
Read more about how we verify data →Data current as of February 2026. Sources: CalHFA, CalAssist Mortgage Fund, California DFPI, HUD, U.S. Department of Veterans Affairs, Fannie Mae, Freddie Mac, FEMA, SBA, California Legislature (AB 238, AB 2424, SB 94).
Last updated: February 2026 | Next update planned: August 2026