Neil Smith lost everything in the California Eaton Fire. He found relief in a state-led initiative offering 90-day mortgage forbearance without penalties. However, the program has left Smith and others in financial distress, with broken promises and threats of foreclosure. Bill AB 238 was designed to provide homeowners with financial protections during the crisis, but some lenders are not upholding their end of the bargain. Homeowners like Smith and Lisa Mason are facing credit score drops and potential foreclosure due to their lenders’ actions. The state agency overseeing financial institutions has received over 100 complaints about the situation, but many homeowners are still awaiting resolution. Homeowners may have legal recourse under California’s Homeowner Bill of Rights and should document everything, file complaints, seek legal aid, and explore other options to protect themselves.

Read more at Yahoo Finance: California fires destroyed his home, then his lender destroyed his credit. How forbearance is burning victims