ALTADENA, Calif. — This California grandma’s newly renovated home was completely destroyed by the Los Angeles wildfires. But she’s still paying off the $800,000 mortgage she took out for the upgrade.
Costco employee Miriam Kotero, 46, had just finished renovating her home, which was valued at $1.2 million, when the Eaton Fire ripped through her neighborhood on Jan. 8.
But she said she would only be covered for $200,000 because she had not yet upgraded her insurance on the property where she and her family had lived for years.
“I had insurance,” Kotero told the Sunday Post.
“We went from one bedroom and one bathroom to three bedrooms, two bathrooms and an attached garage. Our insurance was not updated to reflect the change.”
“I had the house refinanced, so when it was appraised, it was appraised at $1.2 million.I borrowed money to renovate it, but I currently owe $800,000 on this house.”
Kotero said he bet everything on his parents’ home, but it burned down, leaving him with $6,000 in mortgage payments and nowhere to live.
“I feel terrible,” Kotero said.
“Nothing found.”
Kotero’s situation is one example of the larger crisis facing fire victims in California’s highly regulated and extremely expensive housing market.
Homeowners who bought years ago have seen their property values soar, discouraging them from moving elsewhere.
Experts say many homes are underinsured because insurance companies pulled out of the California market en masse ahead of the wildfires.
Kotero and her three children, ages 17, 22 and 25, were at Disneyland during the fire and rushed home after seeing the news.
After spending several hours and using whatever means they could, they fled to safety.
They believe their home was engulfed just four hours after they left. When they first returned on Sunday, they found only piles of charred rubble.
“We lost everything, all our memories,” she said.
“We didn’t take anything with us. The wind was so strong and the fire was so close that we didn’t have time to collect anything before we evacuated.”
“I was looking for pictures. I was hoping to find pictures of my granddaughter, my children, my parents, or at least one painting of the Virgin Mary that I’ve had for over 20 years.”
Kotero and his family – three children, his partner and a granddaughter – live outside the hotel, but it is unclear where they will be when they check out on Wednesday.
And Kotero said she can’t go far because her eldest son is in the middle of his senior year at Pasadena High School, and they’ll be paying rent in a crisis situation in Los Angeles until they get back on their feet.
“My insurance covers my $44,000 rent, but it will be at least two years before I can rebuild my house. I still have to pay my $6,000 a month mortgage and rent a place to live.” she said.
Mortgage lenders often suspend payments when natural disasters occur, but even if a forbearance is obtained, Kotero still doesn’t know how she’ll cover her mortgage without proper insurance. .
“$44,000 doesn’t cover everything,” she says.
“There’s nothing but ashes.”
