Foreclosure Stopped
DPFI Helps a Wildfire Survivor Get Forbearance
After a wildfire, many homeowners find themselves in an unexpected predicament—they are required to continue paying their mortgage even though their home has been destroyed or is uninhabitable. It can be a challenging time. Take Mary* for example. She had reached out to her mortgage company for help, not once, but twice, after her Malibu home was damaged in the LA wildfires. However, she met roadblocks and bureaucracy as the company informed her that their systems hadn’t yet been updated to reflect Governor Newsom’s wildfire-related relief announcement. To make matters worse, the next day, Mary received a Notice of Default and Intent to Accelerate, a document indicating that she had violated her loan agreement, a situation that could lead to foreclosure. Frustrated and worried, Mary turned to DFPI’s dedicated customer service task force for help.
After DFPI intervened, we learned that Mary had inadvertently submitted an incomplete application, so her forbearance request was denied. She corrected that, and in February 2025, less than one month after contacting DFPI, her loan for temporary disaster forbearance was approved. Mary says her foreclosure proceedings were also put on hold. DFPI is proud that we can help Mary and others gain more financial certainty during a harrowing experience, such as a wildfire.
* A pseudonym is used for privacy.
Decision Reversed
Disaster Forbearance Approved in Altadena
The catastrophic Eaton fire raced through parts of southern California, destroying hundreds of homes and businesses in January 2025. It killed 19 people and, to date, is one of the deadliest and most destructive wildfires in recent California history. After the embers died down, many residents, like Jerry*, faced the daunting task of rebuilding their lives. He lived in Altadena, located in the foothills of the San Gabriel Mountains, and reached out to his mortgage company for help, hoping to get a few months’ breathing space from repaying his loan. Unfortunately, he received a major setback. His company mistakenly told him that, because he had not fallen behind on his mortgage payments, he would not qualify for mortgage forbearance.
Luckily, Jerry did not take no for an answer and contacted DFPI for help. The department had received commitments from more than 400 financial institutions that had voluntarily agreed to provide relief to affected customers. Our Customer Service staff reached out to the loan company, which quickly acknowledged their error. It reversed its decisions, and Jerry was approved for an initial 90-day disaster forbearance.
* A pseudonym is used for privacy.
With DFPI’s assistance, Jerry was able to proceed with rebuilding his life after this devastating fire.
Scam Prevented
DFPI Helps Senior Prevent Long Running Email Scam
During the COVID-19 pandemic, Sophia*, a senior from Jackson, CA, began receiving monthly emails claiming she owed $969 in rent for an apartment she had never rented, along with a broadband bill. At the start of each month, another email arrived thanking her for paying both bills, but payments had never been made. Concerned but seeing no suspicious activity on her credit reports or financial accounts, she chose not to respond.
The emails continued for years, eventually totaling 137 messages. Sophia did not respond to any of the emails; however, she did not delete them either. Unsure how to stop the scam, Sophia attended a presentation at Amador Senior Center led by DFPI Targeted Outreach Director Kue Lee. She showed him several of the emails on her phone.
After reviewing the situation and confirming that Sophia regularly monitored her financial records, Lee explained that the scammers were likely waiting for a response to initiate a major fraud scheme. Since Sophia had never responded to the emails, the scam had been avoided. What a relief that was!
Motivated to take action, Sophia blocked the scam email address, deleted all of the messages, and reported them to Google. She never heard from the scammer again.
* A pseudonym is used for privacy.
Sophia credits Kue Lee and the DFPI for helping her understand the nature of the scam and finally put an end to it.
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