Consumer complaint received 2015-06-30
Company: PENNYMAC LOAN SERVICES, LLC.
State: HI
Product: Mortgage
Sub-product: Conventional adjustable mortgage (ARM)
Issue: Loan modification,collection,foreclosure

Complaint:
I was offered a loan modification by PennyMac, through the servicer, XXXX Mortgage. I accepted the terms, performed as required, and the servicer then stopped accepting my payments. I have attached a timeline matrix that explains the timing of my conversations with XXXX. This shows the TPP was dated XXXX, but it did not come to me until amost XXXX. I am filing this complaint because my property is about to be sold at foreclosure auction, and my entire default is solely because PennyMac failed to perform under the terms it offered me. 
Short Background : After the modification offer was made, and while I was making payments, I filed Chapter XXXX Bankruptcy due to a separate matter. I did not reaffirm the debt, but I did indicate I wished to retain the property, I continued to make the modified payments I was offered, and XXXX continued to accept these payments, cashing my checks. 
After I had made about XXXX modified payments, XXXX refused to accept them, and insisted I bring the account current. No explanation was offered. A few months later, PennyMac notified me it was the new servicer of the loan and the owner. It stated it had acquired the loan XXXX months earlier, before the modification offer was made. PennyMac refused to honor the terms of the modification, which I realized had come from it. Instead, PennyMac offered me a new loan modification on the phone, and I accepted those terms. When the papers came, they were nothing like was offered to me. I wrote back asking for what I was offered, and asking for what PennyMac had offered the previous year. 
PennyMac stopped communicating with me and sent me papers saying I had declined the modification. It sent no further mortgage statements, no disclosures for loss mitigation solutions, nothing. 
PennyMac sued me for foreclosure. During this time, it tried to get me to give a deed in lieu of foreclosure. It told me that even though I had a XXXX mortgage, it had arranged to have that released. That was not true. During this time, I tried to sell the property and the XXXX mortgage holder required over {$9000.00} to release its mortgage. I called them, and they said PennyMac had never arranged the deal it told me about. I had to pay $ XXXX if I wanted to get a mortgage release, whether I sold the property or whether I gave PennyMac a deed in lieu of foreclosure. PennyMac also told me that if I did not give a deed in lieu of foreclosure I would be responsible for any unpaid balance after a foreclosure sale. 
Recently, I received an offer to purchase the property before the foreclosure sale date. My attorney gave this to the court-appointed foreclosure commissioner. The commissioner gave it to PennyMac, whose attorneys said that PennyMac was going to communicate directly with the prospective purchaser. PennyMac received another offer on the property before the sale date. PennyMac is trying to sell my property to others outside the foreclosure sale. 
PennyMac told my lawyer that it would not consider me for a loan modification, and that it had offered a deed in lieu and had arranged to have the XXXX mortgage released. 
I would like the modification I was offered, and the XXXX I performed on. I would also like all my attorney fees paid because if PennyMac had done what it promised, the foreclosure would not have occurred, and the foreclosure sale would not happen. I would like the sale postponed, and the foreclosure dismissed or put on hold. I would like PennyMac and its attorneys and the court-appointed commissioner all stopped from trying to sell my property outside the foreclosure process. If the sale occurs, I would like it rescinded at the confirmation hearing.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation