Consumer complaint received 2017-02-18
Product: Mortgage — Conventional fixed mortgage
Issue: Loan modification,collection,foreclosure — 
Company: PENNYMAC LOAN SERVICES, LLC. (NJ)

First started when when applied for a home mortgage in XX/XX/XXXX. Using XXXX of XXXX NJ. We were approved for a mortgage from XXXX of XXXX at 7.25 % We were told that our payment would about 2300 a month. We call mortgage company back and confirmed this price. Also was told that do n't worry about the percentage rate we will get you into something else. So we close on our existing home and rent back for about 3 weeks as the existing owners in our new home were unable to move to their residence until then. So Day of Closing comes and we have all the stuff in the moving truck, we go to the closing and while signing documents we see that our payment will be XXXX a month. XXXX more per month then we had ever budgeted for. Our Lawyer advises that we can halt the closing and figure something out. This was impossible as we were already packed and on the truck and closed on our home XXXX weeks before so we did not have anyplace to live. Only option was to continue on and hope payments could be made. 
Now comes XX/XX/XXXX we finally are at the breaking point of our finances and we look for ways to lower the payment on our house. We see a commercial for a company called XXXX. We make an appointment and see them, So for XXXX dollars we guarantee that we can lower your payments. We ask ok if we pay you XXXX over time how do we make our mortgage payment. Told do n't worry if you ca n't make payments while we are negotiating at will be worked out in the deal. Ok so I think we make one more payment and forget it we ca n't do it with payments to them and mortgage, so we fallback on what they said and no longer make payments. Contact with XXXX goes on but seem to get less and less as time goes on. Finally phones stop being answered. We drive over to the office and it does not exist anymore. Come to find out a few days later then NY state attorney general has slapped XXXX with a cease and desist order and is investing them. Needless to say we never saw that XXXX again and the promised modification do n't know. Now we are almost a year behind in payments and there is no way to get out from under. Persons telling me that since I am a XXXX I can loose my job if we file bankruptcy. Finally around XX/XX/XXXX or so we give up ca n't do it. So we do an internet search for bankruptcy lawyers and find a company called XXXX. There site says no problem file bankruptcy and you can keep everything. So make an appointment the claim to be able to do all the stuff they said we will be out of the mortgage and we can still own our home and everything else. Ok send them money We start the process. Goes really slow, weeks go by and not much. Then here please pay us more money and go to the credit counseling site and watch the program. Again weeks go by and nothing, we call up again we are told well this is happening and your case has been transferred to another lawyer and such and oh by the way that counseling session you did is no longer valid so please pay again and do it again. This went on for a third time. Finally after wasting about a year or so we tell them that we are out and send us back our money. Nope sorry will send you back some but all the leg work we have done will cost. Got back XXXX out of XXXX. Now really do n't know what to do. XX/XX/XXXX comes along now the mortgage has changed to XXXX and then sold to Penny Mac. They start foreclosure processes on us. We retain a lawyer, He asks Penny Mac to allow us to enter into a state mediation program for modification. The mod that comes back please pay XXXX upfront and oh your payment will be higher then before. Cant happen. We finally get letters of sheriffs sale. Make one last push for modification and they tell us that there are no programs available for us. We and our lawyer are dumbfounded. We just want to stay in our home and make a payment we can afford