Consumer complaint received 2018-12-28
Company: PENNYMAC LOAN SERVICES, LLC.
State: IN
Product: Mortgage
Sub-product: FHA mortgage
Issue: Struggling to pay mortgage

Complaint:
Does anyone else see a problem here? If so, can someone please help me get justice? My goal was to prevent my home loan from Foreclosure litigation, yet I found myself in this exact situation after being bamboozled by PennyMac Loan Services! Heres the long and the short of what happened to me. 

I was a former participant in the Get Hope Hardest Hit Foreclosure Prevention Program due to prolonged unemployment. PennyMac Loan Services purchased my loan from XXXX  XXXX XXXX in XX/XX/XXXX while I was still receiving HHF assistance from the Indiana Housing and Community Development Authority. After the Hardest Hit Fund Program expired in XX/XX/XXXX, I was approved for, and participated in, PennyMacs Special Forbearance Program. 

As a participant in the Special Forbearance program, I was asked several times by PennyMac representatives if I wanted to be considered for a loan modification. I was denied the loan modification because of my XXXX status. I accepted PennyMacs offers to review my file for a loan modification. 
Therefore, I delayed listing my home before and after the Special Forbearance program. 

The Special Forbearance with PennyMac was valid through XX/XX/XXXX, but by that afternoon I received PennyMacs file stamped foreclosure documentation submitted by their attorneys, XXXX and XXXX! 

After I was denied a loan modification for the final time, I reached out to my realtor ; however, PennyMac refused to provide guidance for setting the sale price and only did so after declining three of the five offers for Short Sale I provided, stating on one hand that I was not eligible for a Short Sale, then on the other stating that each offer was not priced at a fair market value. 

After many requests, I finally received PennyMacs suggested sale price range of $ XXXX- {$170000.00}, based on the area where my former home is located ; however, the lender set this range but had not inspected for depreciation from age, as well as, normal wear and tear, or appraised the property to determine its actual worth. Furthermore, one of the five offers I received and forwarded to PennyMac for Short Sale approval was a cash offer of {$110000.00}, one was for {$120000.00}, and another was above {$120000.00}. 

It is also important to note that each time I requested my Loan Payoff, PennyMacs 7-10 day waiting period for providing payoff information caused perspective buyers to grow anxious or lose interest. Whats more, my realtor and interested parties complained this time loss was counter-productive to the sales process. 

By the time PennyMac declined the fifth offer, which was above the bottom of the range they provided and was for the stated reason that their people did not have time to review the documentation because the sale date was within 37 days, I was at my wits end. 

This final straw prompted me do a little research on PennyMac Loan Services because of the apparent evasiveness I experienced while trying to sale my home. What I learned was astonishing. The restructured PennyMac was formerly XXXX, a mortgage company at the center of the XX/XX/XXXX subprime mortgage fiasco. PennyMacs CEO and senior executives were at XXXX  when the housing market tanked, and their apparent business model at this company is comparable, purchasing distressed mortgages at rock-bottom prices and reselling them for a substantial profit. 

In closing, I have always thought it was curious and questioned whether I had been preyed upon when PennyMac acquired my loan while I was an active participant in the Hardest Hit Foreclosure Prevention Program. I could hardly fathom that PennyMac knowingly purchased a distressed mortgage, and I believe based on their track record, this acquisition was with the intention of reselling my home for the benefit of the company. 

The Sheriffs Sale is occurred on XX/XX/XXXX at which time the property was scheduled to be auctioned. I believe PennyMacs intentions all along was to allow my property to be sold in the Sheriffs Sale so that the company can gain from the sale. It is my believe that PennyMac calculatedly let the clock run out only having the property appraised when the Sheriffs Sale was scheduled to take place within 30-40 days. 

PennyMacs declinations and delays needlessly cost me my home when I had perspective buyers who were interested in purchasing the property ; resulted in expensive court costs and attorneys fees ; and a Sheriffs sale! 

I do not feel PennyMacs actions were fair or just because I participated in foreclosure prevention programs, and I tried to sell my home to no avail. Therefore, it is for these reasons, I am writing to ask if you are aware of other HHF participants, or consumers with distressed mortgages who have had similar concerns with PennyMac. 

If there are others, based on this companys history of deceptive practices and their handling of my account, I would ask that you examine PennyMacs practices for ethics violations, and require that PennyMac remove the foreclosure from my credit report.

Please feel free to contact me should you have questions or need additional information. 

Sincerely, XXXX XXXX XXXX XXXX ( XXXX ) XXXX

Company response to consumer: Closed with explanation