Consumer complaint received 2024-07-06 00:00:00
Product: Mortgage — USDA mortgage
Issue: Struggling to pay mortgage — Trying to communicate with the company to fix an issue related to modification, forbearance, short sale, deed-in-lieu, bankruptcy, or foreclosure
Company: PENNYMAC LOAN SERVICES, LLC.
State: ID

Complaint narrative:
We bought our house with a USDA loan in XXXX and recently went through a financial hardship that put us in a tough spot. That situation has been resolved and we have tried to get Penny Mac to work with us but instead of providing solutions or help they have scheduled a foreclosure sale date for XX/XX/XXXX. We feel that Penny Mac has denied us access to government programs that the USDA has available for distressed homeowners and are frustrated that they are pushing to auction our home we live in with our XXXX children instead of trying to provide a solution. 

We had financial problems when the pandemic hit Idaho and lost jobs and hours because of XXXX. My husband XXXX works doing auto body painting and I work in the restaurant business. XXXX ended up getting laid off because there was no business at his shop and my hours were drastically cut and we could not keep up with our bills and feed our family. We ended up getting approved for the CARES forbearance and this helped us get back on our feet and we resumed making our regular mortgage payments in XXXX. Several months later XXXX was laid off again and out of work for nearly 4 months. My hours at the restaurant were cut as well. We struggled keeping up with the bills but managed to make the mortgage payment on time for about 9 months while going through this situation but finally defaulted in XX/XX/XXXX because all of our savings and resources were drained. 

I contacted the agents at Penny Mac and told them the situation. They told me there might be options that could be considered but that there was no guarantee. We talked to family members about borrowing money and felt that we could resolve this matter on our own. In early XXXX we were back on our feet financially, I had gotten promoted to manager and had full time hours and XXXX found a great new shop closer to home to work at. I tried to make my mortgage payment online but the system would not accept the payment. I called in to Penny Mac and they told me I had to reinstate the full past due amount. We were back on our feet but did not have enough money put aside to pay all past due payments at once. The agent told us they could possibly help and sent us out a modification package and we filled it out but before we sent the paperwork in we received a notice of foreclosure sale date and this put us into panic mode. We thought that Penny Mac wanted to work with us and try and give us a chance to get reviewed for USDA borrower assistance programs but instead they just went and scheduled a foreclosure sale date for XX/XX/XXXX. This does not seem right. Our family went through a tough time and we have XXXX children in our home to support. Our hardship is resolved and we have the ability to make our mortgage payment, the problem is that Penny Mac is refusing to work with us and demanding we pay {$11000.00} in one large payment which we cant do at this time. Instead of negotiating with us Penny Mac scheduled a foreclosure sale date XX/XX/XXXX.

Company response to consumer: Closed with explanation