
In the wake of the devastating wildfires that swept through California, residents are grappling with the loss of homes, businesses, and belongings. Beyond the immense emotional toll, the practical challenges of rebuilding are daunting. On this episode of Ask the Expert, Pouyan Broukhim, Founder and CEO of PB Financial Group, provided critical insights into dealing with mortgages after a disaster and explained how his company uses hard money loans to support homeowners and investors.
The Challenges Following a Natural Disaster
When wildfires destroy homes and businesses, the question on everyone’s mind is: “What happens next?” Many affected individuals are left wondering how to balance the financial burden of rebuilding or relocating.
One of the most common questions Broukhim hears is whether homeowners still need to pay their mortgage after losing their property. Unfortunately, he explained that even if your home is gone, your mortgage debt remains. Banks will expect payments as usual unless you work out an arrangement. Foreclosure due to non-payment could jeopardize access to insurance funds, making your situation even more difficult.
While it may feel overwhelming, Broukhim emphasized that most banks are not heartless. Many lenders offer programs, such as deferred payment options, to help borrowers navigate financial challenges caused by disasters. He encouraged individuals to communicate with their banks for guidance, as lenders want to avoid foreclosures whenever possible.
Balancing Costs: Paying a Mortgage After Losing a Home
A common concern for displaced homeowners is managing ongoing mortgage payments while also trying to secure new housing. Broukhim recommended taking it one step at a time, starting with filing claims with your insurance company.
If you have homeowner’s insurance, most policies include rental coverage that can help pay for temporary housing. This can provide breathing room as you assess your next steps. However, Broukhim cautioned that navigating insurance claims isn’t always straightforward. Some families may need legal assistance if they believe their insurer isn’t offering fair compensation.
For those without adequate insurance, federal programs like FEMA might feel like a lifeline. However, Broukhim noted that FEMA’s financial assistance is typically limited and not enough to fully address long-term needs.
Rebuilding and the Housing Market
As families begin to think about rebuilding, many factors impact how quickly this process can happen. Permitting is one major hurdle. Broukhim explained that in California, obtaining permits for construction can take six months to a year—or longer. For areas devastated by fires, rebuilding timelines may stretch even further due to damaged utilities and overloaded city offices.
To speed up recovery, local authorities may adopt strategies like those implemented in Paradise, California, after its catastrophic fires. In that case, pre-approved home layouts allowed residents to get permits more quickly. Still, California’s desire for customized properties could mean longer delays for homeowners who want unique designs.
Broukhim also highlighted another challenge: the lack of available housing. Wildfires have impacted inventory, especially in desirable areas of Los Angeles. High demand has triggered rental price increases and, in some cases, price gouging. For example, homes that previously rented for $7,000 to $8,000 per month are now listed at $12,000 to $15,000.
The Role of Hard Money Loans
For those ready to rebuild or invest in real estate opportunities created by these disasters, PB Financial Group specializes in hard money loans. Unlike traditional financing options, which often have lengthy approval processes, hard money loans provide fast and flexible funding.
Broukhim described hard money lenders as the “uncle” you turn to in a financial emergency—they’re here to help you act quickly. This type of financing is particularly useful for homeowners who need bridge loans, investors purchasing damaged properties, or individuals financing construction.
By listening to clients’ short- and long-term goals, PB Financial Group creates tailored loan solutions. Their ability to close in as little as seven to ten business days has earned them a reputation as one of California’s most trusted hard money lenders.
Preparing for What’s Next
Looking ahead, Broukhim predicts that interest rates could remain high as the Federal Reserve works to manage inflation. While this presents additional challenges for individuals and investors, the scarcity of available properties has kept real estate values strong, even in hard-hit areas.
He also noted that his office expects an increase in demand for land financing and construction loans as rebuilding efforts gain traction. However, he emphasized the importance of patience, as the rebuilding process will take time.
Final Advice for Families
For families dealing with the aftermath of wildfires, Broukhim had one key piece of advice: start with the grieving process. Losing your home and belongings is a deeply emotional experience, and making rash financial decisions immediately afterward can lead to mistakes.
Once you’re ready to move forward, he recommended consulting with an attorney, especially if you face challenges with insurance claims. While insurance companies offer support, their priority is protecting their bottom line. Having legal representation ensures your interests are protected.
Finally, rebuild with positivity and explore all available options, whether it’s temporary housing assistance, construction loans, or working with your bank to defer payments.
Disasters like the California wildfires create unpredictable challenges, but with the right resources and support, recovery is possible. Whether you’re a homeowner trying to navigate mortgage questions or an investor exploring rebuilding opportunities, companies like PB Financial Group offer tools to help you move forward.
Take the process step by step, and remember that rebuilding isn’t just about homes—it’s about hope, resilience, and creating a stronger future.
About PB Financial Group
Established in 2006, PB Financial Group is a leading provider of hard money loans in California. With over 4,000 funded loans, the company specializes in delivering quick and tailored financing solutions. Whether helping displaced families secure bridge loans or assisting investors with fix-and-flip projects, PB Financial Group is a trusted partner in navigating complex financial landscapes.
For more information, visit www.CalHardMoney.com or call PB Financial Group at (877) 700-3703. To apply for a hard money loan, click here.