1. A Look Back: What COVID Protections Did
When the COVID-19 pandemic began, both federal and California laws created emergency safeguards:
- Forbearance rights for federally backed loans (CARES Act, 2020)
- Foreclosure moratoriums preventing sales during national emergencies
- Expanded borrower contact requirements under Cal. Civ. Code § 3273.02
These programs aimed to prevent mass displacement while families faced income loss. Though the moratoriums have expired, their structural changes to loan servicing remain.
2. Forbearance and Repayment Options Still Available
Most major lenders—FHA, VA, USDA, Fannie Mae, and Freddie Mac—still maintain COVID-19 recovery programs. These include:
- Payment deferral plans, moving missed payments to the end of the loan
- Partial claims or subordinate liens (FHA loans)
- Flex modifications, allowing long-term payment reductions
Homeowners who never formally requested forbearance during 2020–2022 can still apply under “COVID-related hardship extensions” through their servicer.
3. California Homeowner Relief Program
The California Mortgage Relief Program (CalHFA), launched in 2021, remains open for qualifying homeowners through 2025 while funds last. It provides up to $80,000 in mortgage assistance for past-due payments, property taxes, and HOA fees. Eligibility includes:
- Primary residence in California
- Income below county median
- Documented pandemic-related hardship
Visit CAMortgageRelief.org for updated guidelines and application details.
4. Servicer Requirements Continue
Even after the pandemic, servicers must continue enhanced borrower outreach:
- Make live contact attempts before filing foreclosure (Cal. Civ. Code § 3273.10)
- Provide written loss-mitigation offers
- Pause foreclosure while a complete application is under review
These provisions ensure no borrower is “fast-tracked” to foreclosure without an opportunity for review—an improvement that became permanent after 2022.
5. What Homeowners Should Do Now
- Ask your servicer about current hardship or payment-deferral options.
- Apply for CalHFA relief if you still owe arrears from the pandemic.
- Document all communications and retain written evidence of hardship.
- Stay alert for extensions or new funding programs as federal aid winds down.
The pandemic may be behind us, but its lessons—and protections—remain. California’s homeowner safeguards today exist because of those emergency reforms, and they still work for families rebuilding stability.
Not sure what the next step should be?
We help homeowners and Realtors understand available options.
