Consumer complaint received 2024-03-06
Product: Mortgage — VA mortgage
Issue: Struggling to pay mortgage — Applying for or obtaining a modification, forbearance plan, short sale, or deed-in-lieu
Company: PENNYMAC LOAN SERVICES, LLC. (CA)

Sometime in XXXX, our property tax was not paid for by Pennymac. I found out that the property tax was delinquent when I contacted the county assessor 's office. I contacted Pennymac then to let them know of this issue and they told me that they will issue the funds and pay the property tax that was due ( i believe it was ~ {$7000.00} + the late fees it accumulated for not paying on time ). I was not informed then that by doing so, this will put me on a negative on the escrow funds. I continued to make my monthly mortgage payments then in the amount of {$3600.00}. Between XXXX of XXXX, I contacted Pennymac because the monthly mortgage at that time was a lot more than what I had been paying ( it was double the amount ). I asked them why the mortgage payment was high and it was then that they informed me that the monthly mortgage payments i was making before were all going towards escrow because it was negative. Pennymac never informed- by phone or letter that this was happening. Before the end of the year, I had asked them for a loan modification but the loan modification they offered me was to pay $ XXXX monthly so that the late payments and missed mortgage payments can be put in the back of the loan. I told them that I was not able to pay the modification amount because I was already struggling to pay the {$3800.00}. I was not given any other option but to pay this or else I would lose my home. I called again in XX/XX/XXXX because I was finding it very difficult to pay the modification amount and I was told then that I can pay whatever amount for that time just so i don't get kicked out of the program. I did just that, as advised by Pennymac representative, but when I called back in XXXX because I can not make the payments, I was told then that I need to do another loan modification because I can not just not make the modification amount ( meaning what they told me was not true ). By XX/XX/XXXX, I put in an application and continued to put in any amount towards the mortgage as suggested by Pennymac while going through the modification application process.

More recently, I called Pennymac to ask for the status of the loan modification XXXX and was told that I was approved. However, the loan modification they are offering me was that I pay $ XXXX per month for 3 months ( while I am in the program ) and that the interest rate will increase from 3.25 % ( my current loan ) to XXXX % even after the trial period. It doesn't make sense to me why Pennymac would offer me such program when the reason I reached out to them for a loan modification was because I was having difficultly making my $ 3800 monthly mortgage fee. I asked to speak to a loan officer so that this can be explained to me, but i was informed that they don't have or will not allow a loan office to speak with me regarding this matter. I dont quite understand why Pennymac would offer a higher mortgage payment for a client who was trying to lower a monthly mortgage payment. 
I am not getting the help from Pennymac to allow me to work with them and have a payment plan that could help me with the overdues/late fees that were caused by them in the first place by not informing me that my previous mortgage payments were being put to escrow instead. I feel that they should have then informed me of the situation and worked with me to increase the monthly payment at that time instead of letting the delinquency go on for months.

I would like for Pennymac to reconsider my loan modification and lower my monthly payments so that I can go back to my original payment of {$3800.00}. Paying $ 5000 monthly with an increase in my interest rate is irrational as it defeats the purpose of why i am seeking a loan modification.