Core Perspective - The current mortgage relief system in California is inadequate for homeowners affected by disasters, as it only provides 12 months of forbearance, while rebuilding typically takes two to three years [2][4]. Group 1: Mortgage Relief Challenges - Homeowners like Rachel Jonas and Rob Fagnani are facing the prospect of paying a year's worth of mortgage payments on homes that no longer exist due to the Palisades fire [1]. - The lack of a universal process for homeowners in federally declared disasters exacerbates the situation, as the forbearance relief is deemed insufficient [4]. - A survey of over 130 homeowners revealed that many are dealing with multiple financial stressors, including paying mortgages on non-existent homes, temporary housing rents, and insurance gaps [5]. Group 2: Financial Implications of Forbearance - After the forbearance period ends, homeowners may face balloon payments ranging from $50,000 to $100,000 for deferred mortgage payments [6]. - California law protects homeowners from balloon payments for 12 months, but options after that are limited, potentially impacting credit scores and making future borrowing for rebuilding more expensive [7]. - The available options post-forbearance, such as paying a lump sum or extending forbearance, are challenging and can lead to significant financial strain [8].

So Mark, if you're in the Safe Plan right now, what is going to happen to your loans. >> Well, starting August 1st, they will start acrewing interest and that interest will be added to your loan balance. It won't be capitalized just yet, but uh you'll be in a general forbearance for at least another month, but you should consider switching into the incomebased repayment plan so that those monthly payments count towards eventual forgiveness. >> So, you you said you should expect to be in the forbearance peri ...