Consumer complaint received 2017-11-29
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — 
Company: PENNYMAC LOAN SERVICES, LLC. (NJ)

PennyMac is withholding the final payment for repairs to my home. The homeowner 's insurance claim process began in XX/XX/XXXX. I had a buyer for the home, short sale process, and a provision of closing was the floors to be repaired. My insurance company sent me the check for the repairs with PennyMac as a required signer, no problem this is the process for claims over {$5000.00}. The check was for approximately {$4300.00} after my {$1000.00} deductible payment to be paid. My closing was scheduled for the beginning of XX/XX/XXXX, PennyMac agreed to the terms of the floor being repaired. I waited 2 1/2 months for them to disperse the 1st payment even after them receiving all required documents. They finally mailed the check via XXXX and the tracking information stated it was delivered, I had not received it. I contacted their loss department and requested a stop payment and re-issuance of the check. This process takes 15 business days, my closing was to be the following week, I had to reset closing for the end of XX/XX/XXXX, luckily the buyer agreed. I had to do this 2 more times by the way. Fast forward to the repairs being completed, I contacted the loss department and the mortgage side ( I had learned the two departments do not communicate ) to change my address. They advised it would be updated, this was the week of XX/XX/XXXX. Their website stated the final check was mailed on XX/XX/XXXX and is marked delivered by XX/XX/XXXX. I had not received a check. I called the loss department on XX/XX/XXXX, they had not updated my address as previously discussed and the check was mailed to my old apartment. I immediately requested a stop payment and re-issuance of this check and patiently waited for the new check to arrive. I called once a week to get an update on the stop payment and was told each time it takes 15 business days. I continued to call because by now the house closing has been completed on XX/XX/XXXX and PennyMac has been paid for the mortgage. I no longer have access to view the progress of the check re issuance. I called on XX/XX/XXXX, 15 business days have now passed, and the check still has not been issued. The employees who answer the phone just wants me to hang up and wait for the check, I requested a supervisor, was told no supervisor would be available due to all the claims they were processing. I still waited on the line. I was eventually transferred to a " resolution specialist '' who asked if I could recover the check because they are waiting to see it the check was cashed. I explained if you had stopped payment on the check on XX/XX/XXXX when I called there would be no cashing of the check because there is a stop payment. The specialist then proceeded to ask if I could recover the check. I politely advised for the 6th time, and every time I have called since XX/XX/XXXX, that PennyMac made an error by not changing my address in the first place. I have not received the check and want the check reissued without waiting more days. The specialist advised she would have to escalate the issue via email and it could take 2 more days. This is unacceptable. I can face a law suit, am in danger of having a lien placed on the home that is now with another owner, and they are not concerned with helping or getting the funds to me for the contractor. I would like assistance with this please. 

Also, once PennyMac had bought my loan from my original lender there were issues. PennyMac immediately raised my mortgage payment upon purchase of the loan with the explanation that the escrow had to be increased due to taxes. I had to call them constantly for approximately 3 months just to get them to see that I was receiving a {$1000.00} refund in previous years and increasing the payments for escrow would only increase a refund they would need to give at the end of they year. They did not want to adjust my payment because they only annually review escrow. After several calls and attempts they finally did as they should and decreased my payments. 

I then moved out of state for work which caused me to fall behind in my payments. I had the home for sale and had a realtor that we agreed to a 5 % commission, I contacted PennyMac to discuss a short sale because I was about to be 2 months behind, I could no longer afford the rent in XXXX and the mortgage in XXXX. The paperwork was provided and PenyMac approved the short sale. The only issue was when they provided my realtor with the paperwork approving the short sale and it had the commission at 6 %. I contacted PennyMac, and so did my realtor, again because the commission was an error and I did not want this to effect the bottom line. PennyMac responded stating that they always pay the realtors 6 %. I know that short sales are an agreement between the lender and the lendee so there should not be a XXXX form sent to me for IRS purposes and the approximately {$9000.00} loss, which is mostly the commission, to come back on me. I failed to educate myself on this issue and now am unsure of the outcome. 

PennyMac has deceptive practices in place and if I were a more informed consumer I am sure I could describe additional issues with them. I hope you can review this issue and keep other people from being deceived and harmed as I feel I have in this process.