Consumer complaint received 2018-12-04
Product: Mortgage — Other type of mortgage
Issue: Struggling to pay mortgage — 
Company: PENNYMAC LOAN SERVICES, LLC. (PA)

In XX/XX/XXXX I lost my job and in XX/XX/XXXX contacted PennyMac to assistance. I was offer an unemployment forbearance that lowered my payment to {$5.00} a month and told the remaining unpaid portion of my monthly payment would be added to the end of my loan.. Piece of cake, right? Kicked off the forbearance plan for having a payment bounce when I used a friends bank account due to personal issues with my bank. Guideline for the forbearance was being kicked off for 1 60 day late I was denied a modification in XX/XX/XXXX due to excessive DTI.. I was about {$800.00} short on other bills when they lowered my payment to XXXX $ back in XX/XX/XXXX. I disputed this with them and highlighted and mailed the USDA loss mitigation guidelines pointing out there endless errors and wrongful denial of the modification. Thankfully lost my job again in XX/XX/XXXX, yes thankfully because PennyMac started to file foreclosure paperwork and losing my job even though they knew I was still digging a deeper financial deficit and once I managed to get money together to final Chapter XXXX bankruptcy I was about 10 months behind. Filing bankruptcy was my only option to save my house because of the automatic stay that halts the foreclosure proceedings. I again applied for a modification and this time was offered a modification on XX/XX/XXXX which capitalized the payments that would end up past due a total of 13 months and extending my mortgage back to 30 years from about only 22 years remaining, not lowering my interest rate but did reduce my payment about {$23.00} a month.. Saving me after making all 360 monthly payments a huge amount of {$8200.00}. But allows them to not only collect and capitalize on the delinquent interest but then collect to for an additional 8 years tacked on to the end of my loan. I was forced to accept this modification and save my house and keep my mortgage out of the chapter XXXX bankruptcy saving my about {$150.00} a month for my bankruptcy repayment plan or include it in the bankruptcy making my repayment plan monthly amount {$800.00} for 5 years. Accepting the responsibility of an {$800.00} bankruptcy payment plus my other debts and my income currently wouldn't have covered all my payments leaving me in no better financial position than I was without bankruptcy and saving my home. My first payment was XX/XX/XXXX when I went online the beginning of XX/XX/XXXX to pay and it still reflected my old payment amount, I sent a message I was not paying until my information was updated since I have not seen any signed modification by the service company ( PennyMac ). I found out while calling in my payment that the modification was not approved by the bankruptcy court yet but would be XX/XX/XXXX and that my payment is being classified as a " trial payment ''. I was never informed of being put on this " trial payment '' nor what was happening with the modification process. I withdrew the money from my account so the mortgage payment wouldn't clear the account. I feared them not applying the payment to the agreement I signed in XX/XX/XXXX and keeping the money for the delinquent amount owed. I had no contact with PennyMac after they received my signed documents, never informed they had to wait to update the online account ... oh they can't record the signed modification packet that both myself and PennyMac executed. Therefore I have to assume they have not executed the contract for the modification and are deceptively collecting on the past due amount on the account not for the new terms of the note and mortgage. I found out this wasn't recorded yet by pulling court records through my current employer ( I work at a title agency ). However I did find to my surprise that back about 7 years my loan servings was " sold '' from XXXX XXXX XXXX to XXXX/Penny ... The assignment of mortgage that should have been signed and recorded at the courthouse was just recorded on XX/XX/XXXX.. Therefore technically PennyMac had no ownership in the note or mortgage they entire I time I have been paying them monthly, but while not following loss mitigation guidelines per USDA, but while filing foreclosure with their attorney, offering the original forbearance, the denial of modification, accepting and offering a second forbearance and providing a legal contract to modify my mortgage ... a mortgage they did not have the authority to do so. The modification was dated XX/XX/XXXX the signature date of the assignment of mortgages filed about 7 years late was dated XX/XX/XXXX. Penny Mac 's attorney is the " customer '' who filed the assignment. When I contact PennyMac to question this matter. I was quickly told I have questions that involve legal matters and I would get a return call from someone after he speaks with his manager. I would likely hear from someone in the bankruptcy division or legal department. I requested a copy of the modification showing my signature as well as Penny Mac 's signature and date and was told they have to get " approval '' for me to get a copy of the document. I was told the original gets recorded at the courthouse and then returned to PennyMac ... however it doesn't mean I can't possess and executed copy of the document to ensure I am paying what was agreed to in the paperwork I signed and had notarized. I need legal help and do not have the finances to pay for a litigation lawyer ... PLEASE HELP.. they are breaking laws and because I do not have money to obtain legal counsel I have my hands tied..