Consumer complaint received 2023-10-04
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — Foreclosure
Company: PENNYMAC LOAN SERVICES, LLC. (MD)

I am a widow who works full time at XXXX XXXX XXXX. After my husbands unexpected and tragic passing things were very difficult and I barely kept us afloat until we received insurance benefits. In XXXX I was able to do a FHA streamline loan with our lender Penny Mac and get the mortgage put into my name for a cost of about {$3000.00}. Two weeks ago Penny Mac tried to auction my home at foreclosure without ever working with me towards a plan to resolve my delinquency. I now know there are several programs set up for struggling homeowners with FHA loans and Penny Mac never considered me for any of these programs. 

I was the sole support for my family while my kids went to school and I made all my payments on time even during the pandemic. In late XXXX the insurance benefits ran out and we no longer had a safety net and things were tight. We had major car repairs that were a necessity because that was my work transportation and was expecting a tax refund to help cover that so I could stay current with the mortgage. Instead of a tax refund, the IRS diverted the funds that were supposed to come to me to pay past due tax bills from XXXX! I tried to appeal but was denied. I called into Penny Mac after I missed the XXXX and XXXX payments for help and to find out what options were available. I felt the agent was very negative and instead of explaining that because I had an FHA loan that there were several programs that could help I was told I should try and apply for the state homeowner assistance program. I did apply for that program but it was complicated and online and I sent in all of the paperwork but nothing happened. I tried to call in again to Penny Mac and again the agents were discouraging and not helpful. I truly believed I could come up with the money to pay the back payments and did not want to deal with the agents at Penny Mac because of the past experiences. But then things just got away from me and I went into foreclosure and the home is very sentimental to my family. I thought that I was going to lose the home but then I found out through HUD that Penny Mac is required to review me for homeowner assistance options to help me get back in good standing. 

I was forced to file bankruptcy to postpone the foreclosure auction by Penny Mac because I had never been granted access to government programs that they are required to make available to struggling homeowners with FHA loans. I have never been reviewed or considered for any of these programs. My husbands passing was unexpected and tragic and difficult to keep up with the bills and payments on one salary. We were blessed to receive some insurance money and were able to use this to help make ends meet for several years. I have worked for XXXX XXXXXXXX XXXX XXXXXXXX for 14 years in XXXX XXXX I was considered a XXXX XXXX  and worked throughout the pandemic. As I explained I did try to find a solution through the Maryland program and also tried to see if Penny Mac would help but had a bad experience. I have had to handle my problems myself since my husband passed and I thought I would be able to get back on track with the mortgage and caught up, but before I had a chance Penny Mac tried to sell my home.