The Southland Firestorm: A Special Report : The Recovery : THE LAW : Legal Fights Will Be Part of Rebuilding

Long after the battles on the hillsides are over, legal battles may continue for years as people struggle to rebuild their lives. Attorneys from the Los Angeles County Bar Assn. are providing free advice at local Federal Emergency Management Agency centers. The association has also set up a hot line and is offering free half-hour consultations to fire victims.

Here, briefly, are common problems and answers:

Q: What about hiring an attorney to deal with the fire’s aftermath?

A: Be careful, experts warn. “You’ll see the advertisements and flyers start appearing in the next couple of days--you’ll have attorneys trying to find fire victims,” said Nanci Clinch, a Nevada City, Calif., attorney who helped provide legal assistance after a 1989 brush fire scorched 34,000 acres and destroyed 200 homes in that city.

“In the Oakland Hills, 18 months later, some insurance companies hadn’t completed their claims. This is where the scams came in. Lawyers said, ‘I can help you maximize the money you receive from your insurance company but I get 10% of your claim.’ The people got frustrated and they fell prey.”

Q: Can I back out of a real estate deal if the property was damaged or destroyed in the fire?

A: It depends. State law usually allows a buyer to withdraw from a deal without penalty if the home they wanted to buy was still in escrow when it was destroyed. Damage is another issue. Generally, the seller can insist that the buyer go through with the deal if the damage is minimal and can be repaired before escrow is set to close. But the buyer may be able to back out if the damage is extensive, or if the surrounding neighborhood is so devastated that it dramatically decreases the value of the house.

Q: Do I have to continue making my mortgage payments if my home was damaged or destroyed by fire?

A: Legally, yes: You borrowed the money and it must be repaid, even if the house is no longer standing. However, most Southland lenders have already said they are willing to allow borrowers who suffered a loss from the fires to either skip some payments or make some other type of arrangement to lighten the financial burden.

Call your lender immediately to see what type of help you can get. If your lender doesn’t hear from you soon, it will expect to get a full payment by the due date on your statement.