Consumer complaint received 2023-04-04
Company: PENNYMAC LOAN SERVICES, LLC.
State: IN
Product: Mortgage
Sub-product: FHA mortgage
Issue: Incorrect information on your report
Sub-issue: Public record information inaccurate

Complaint:
In XXXX, I was forced to file XXXX XXXX XXXX. I did not want to include my mortgage or my auto loan in the bankruptcy, but my attorney told me this is required for XXXX XXXX XXXX due to the fact that it determines your monthly payment which is paid to the Trustee. 

In XXXX, I lost my job and Covid hit, which meant I was unemployed the majority of the year and had to transfer my XXXX XXXX XXXX  to a XXXX XXXX  On XX/XX/XXXX, I signed an Intent for XXXX XXXX  Filing which indicated that I was to reaffirm both my auto loan and mortgage and my attorney filed this document on XX/XX/XXXX. 

I was not aware of any additional filings done by my attorney and I never went with him to court, nor did he keep me apprised of document filings or any issues with documents we had filed to date. 

As of XX/XX/XXXX, I pulled my credit report to determine why my credit score was not increasing although I had reestablished credit and was making all other payments on time every month. I noticed that my mortgage, which was opened in XXXX, showed as closed in XXXX due to bankruptcy. The mortgage company said that since the mortgage was not reaffirmed, the only way my mortgage would ever be reported again would be if I refinanced or if I bought a new home, establishing a new mortgage. My credit score was over 700 when I bought my home and I have a 4 % interest rate, so it would cost me more to refinance and I have no idea if I would even be approved for a new mortgage with such a low credit score and no rental payment history or mortgage history. 

I contacted my attorney and he was disinterested in explaining what happened or trying to fix anything. The credit reporting agencies kept telling me to file disputes that included payment history proving that I was making timely payments. This tact never worked and there was never any change. 

Finally, this past XXXX, I logged onto the court website and downloaded all documents filed in my bankruptcy, which is how I got the Notice of Intent with the mortgage listed to be reaffirmed as well at the auto loan, which that reaffirmation agreement was filed XX/XX/XXXX. I reached back out to my mortgage company more than once now and I have sent them this document, as I don't think it's fair that I am being punished with what is essentially a 25 year penalty for having to file bankruptcy since my attorney did not do what we agreed he would do or what he was paid to do. When I speak with the mortgage company, they tell me that I can not speak directly to their Bankruptcy Dept, but they have sent them the document to see if a reaffirmation agreement can still be signed and filed to try to correct this error, but they have never gotten back to me. 

I'm honestly not sure what to do in this case. If a reaffirmation agreement can still be signed and filed, I would like to do that to keep my current loan terms and have my payment history reported to the bureaus again. It seems like my mortgage company has sent the documents and request into a black hole and they are not keeping me updated on what is happening. Any help at this point would be greatly appreciated.

Company response to consumer: Closed with explanation