After she and husband Spencer Pratt lost their home to the devastating Pacific Palisades wildfires that hit Los Angeles in January, the Hills alum admitted it's been difficult coming to terms with her new reality.

"To lose that property," she told E! News' Will Marfuggi in an exclusive interview, trailing off as she became emotional. "It's a place that we loved so much."

In the wake of the tragedy, the 38-year-old noted that she and Spencer, 41 -- who share kids sons Gunner, 7 and Ryker, 2 -- are still on the hook financially for their fire-ravaged property.

"We can't rebuild as of right now," she explained. "I don't know what we're gonna do. We still have to pay a mortgage on it every month."

Given the harsh reality of the situation, Heidi has poured her energy into her new album Heidiwood, which hits streaming services May 30, in order to help give her family a fresh start.