Consumer complaint received 2018-12-27
Product: Mortgage — VA mortgage
Issue: Struggling to pay mortgage — 
Company: PENNYMAC LOAN SERVICES, LLC. (TX)

We were affected by XXXX XXXX and our mortgage company Penny Mac put us on forbearance. We were told that since we have never defaulted on our payments after the disaster forbearance was over we would be able to apply those payments to the rear and continue making the same payment amount once we were removed from forbearance. My XXXX was XXXX for almost a year and throughout that year I had to call everyday to Penny Macs loss draft department. Since, they wouldn't release any of the funds our insurance gave us to fix the home. No matter what information I sent in they always found a reason not to release funds. It wasn't until we had XXXX XXXX get involved and they immediately responded and released the funds to pay our contractor. During this time we spent our own money along with personal loans we had to take out to pay the different contractors. At the same time we are still on forbearance and falling behind on our mortgage because we can't afford to make payments since we are paying to get our home fixed out of pocket. The only way they release funds is after the inspections are done. We were told the final inspection needed to be 90 % or higher in order for the final funds to be released. After the 90 % inspection was done we were told no funds would be released because counter tops in the kitchen weren't done. How can we continue to pay a contractor to get us to 100 % when 100 % of the funds have not been released. So we had to take out a loan in order to finish what was requested from Pennymac in order for funds to be released. I rescheduled the inspection and the inspector gave us 100 % on XX/XX/XXXX. I get called by Pennymac the same day the inspection was done to tell me since the home is now livable we are being removed from the disaster forbearance plan and have to make the 16 payments we are behind on or they will move forward with foreclosure. I asked to get transferred over to the loss draft department and get told they don't have any information on the inspection being at 100 %. To give them 4-6 days for the inspection to be submitted. I followed up XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX and get told nothing has been updated. Yet when we call the automatic message on their phone let 's us know that the final inspection has been updated to 100 % as of XX/XX/XXXX. I spoke with them again on XX/XX/XXXX and the agent on the phone said the inspection was not uploaded yet. Once I let her know that I heard the automatic machine tell me that we had 100 % inspection as of XX/XX/XXXX she put me on hold and verified and then finally agreed to submit the request for the final check release and once approved by the main department the check would be overnighted. I follow up a few days later and I get sent to the collections department. I get told that we have to make at least six payments  for them to even approve our loan modification and that maybe that's the reason the final funds are not being released. After getting transferred to different departments we finally get transferred to the loan modification department and get told we might only need to make four payments to qualify for the loan modification since we are sixteen payments behind and maybe that way funds can get released. After we let the agent know that we had never been late before the disaster affected us she looks more into our loan and puts us on hold to speak to a manager who might agree with us not having to pay anything in order to get the loan modification. We get told to call back to follow up because the manager was busy. After following up we get no response in regards to the modification and get told the check release is still under review. I get a call from Pennymac on XX/XX/XXXX saying we now have to speak to someone in the single point of contact department. The agent lets me know that the final check amount is for the same amount that we are behind on. He would like to know if we want to use that final check to make the 16 late  payments. I ask him why we were told that check was to be released to us yet they now have that check in their posession and want to use it towards the payments. I get asked why we have such a large amount left over after repairing the house, and I let him know that we had to use our own money and loans to finish getting the house at 100 % since they failed to release any remaining funds. He says the final check release will need to be approved by legal and after being put on hold I get told the {$21000.00} that we owe will be added to the loan and the new loan amount will be {$160000.00} and we will restart on a 30 year mortgage if the check is released to us. Our original loan was for {$150000.00} and as of XX/XX/XXXX we had {$130000.00} left. I get told the paperwork for that loan modification was mailed out to me on XX/XX/XXXX and the check will be sent overnight the same day XX/XX/XXXX. I called today XX/XX/XXXX and get told the check is under review and they don't know a release date. Meanwhile we are late on our mortgage, being told we will be foreclosed and we need to pay our personal loans we took out to fix the house.