Consumer complaint received 2017-04-19
Product: Mortgage — FHA mortgage
Issue: Loan modification,collection,foreclosure — 
Company: PENNYMAC LOAN SERVICES, LLC. (GA)

1 ) I was self-employed and unable to make my mortgage payments. I applied and was approved for assistance while I was recovering from a financial hurdle.
2   )  XXXX ,  XXXX , I became employed full time as a  XXXX  with the  XXXX   XXXX   XXXX   XXXX   XXXX  and requested assistance from my mortgage lender,   XXXX   XXXX   XXXX   to do a loan modification.    3 )   XXXX ,  XXXX , while in the middle of completing loan modification paperwork, my mortgage loan was transferred from my mortgage service provider,   XXXX   XXXX   XXXX   to  Penny Mac. The new Servicer, Penny Mac,   did not receive any of my documentation that was previously sent to   XXXX    XXXX   XXXX . How is it possible they received all my loan information, including my private demographic information, but NOT receive any other correspondence from  XXXX   XXXX   XXXX  in regards to the status of my loan? It appears there is a disconnect and they information and documentation was not conveyed to the new  Servicer, Penny Mac. I be lieve this would be a  XXXX  and CFPB violation.     4 ) This caused a delay in me being able to complete the loan modification paperwork and my house was put into foreclosure despite me processing the paperwork because despite my new employment, I was n't able to get the past due payments caught up. I was told I had to redo the loan modification paperwork for Penny Mac.
5 )    XXXX ,  XXXX , I completed  Penny Mac 's loan  modification paperwork and began to make the trial payments.    6 )   XXXX   XXXX ,  XXXX , I had to take medical leave of absence from my   XXXX    job. My employer began arguing that I did not qualify for my   XXXX   XXXX   XXXX   benefits even though I had been paying into the benefits from the first day of hire.    7 )  Late  XXXX ,  XXXX , I was approved b y Penny Mac f or the loan modification program and my  XXXX  payment was accepted b y PennyMac. I w as told the paperwork could take up to 30 days to arrive to sign and finalize the loan modification.    7a  )  XXXX   XXXX ,  XXXX ,  XXXX   XXXX , the underwriter and point of contact for the Loan Modification Program throug h Penny Mac (   XXXX  ) returned my phone call. Per my communication log,  XXXX   XXXX  advised me that I have the full month of  XXXX  to make the payment and the documents for the loan modification program were due by the end of  XXXX . She also advised me not to sign the loan modification paperwork if I was trying to complete a short sale on my house.    8 )   XXXX   XXXX ,  XXXX , my income dropped substantially making it impossible for me to make the  XXXX  payment.    9 )   XXXX   XXXX ,  XXXX ,  Penny Mac  sent me a mortgage statement billing me for the full past due amount, stating my " ... loan is severely delinquent, and as such, foreclosure action has begun ... '' I was not even given 30 days before they moved my loan from loan modification directly into foreclosure as this statement was dated  XXXX   XXXX ,  XXXX . I received it towards the end of the month. I also had not been late with my mortgage at this point. I had made my  XXXX  payment, which  Penny Mac a ccepted and processed. The  XXXX  payment was not late until past the end of the last day of the month of  XXXX .    10 )  In a letter dated  XXXX   XXXX ,  XXXX  ( received  XXXX   XXXX ,  XXXX   ), Penny Mac  outlines short sale proceedings stating, " PennyMac Loan Services ... .wants to work with you to resolve your delinquency issues ... This letter is to inform you that you loan is being reviewed for a short sale and your file is currently in the application phase. '' The letter outlines all documentation they needed, which I had already submitted to them via the   XXXX   XXXX   XXXX   Short Sale depart. chair,  XXXX   XXXX .    11 )   XXXX   XXXX ,  XXXX , I calle d Penny Mac to  discuss again short sale options.  XXXX   XXXX  of  Penny Mac   XXXX  told me my loan was moved to the short sale department. PENNY  MAC  HAD STARTED THE SHORT SALE PROCESS. ***PLEASE SEE ATTACHED DOCUMENT "  XXXX   XXXX  MORTGAGE COMPLAINT WHAT HAPPENED  XXXX  '' FOR MORE INFO.