Mortgage Forbearance in California 2025: What Homeowners Need to Know

California's Mortgage Forbearance Act (AB 238)

Signed by Governor Newsom in September 2025, AB 238 requires mortgage servicers operating in California to offer forbearance to homeowners experiencing a financial hardship.

Key Provisions

Up to 12 months of forbearance available. Servicers must acknowledge your request within 5 business days. Available to homeowners with documented hardship — job loss, income reduction, medical event, divorce, and others. Applies to most residential mortgage loans serviced in California.

What Forbearance Covers

Forbearance temporarily pauses or reduces your mortgage payments. The missed payments are not forgiven — they are deferred. When forbearance ends, you'll repay them through a repayment plan, modification, or other arrangement.

How to Request Forbearance

Call your servicer directly and say: I am experiencing a financial hardship and I am requesting forbearance under California AB 238. Document the call. Follow up in writing.

After Forbearance Ends

NFDA helps homeowners transition from forbearance to permanent solutions. Contact us at www.thenfda.com or 949-484-9849.