Consumer complaint received 2026-05-22 00:00:00
Product: Mortgage — Conventional home 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: GA

Complaint narrative:
To Whom It May Concern, This letter serves as an Emergency Request for Postponement of the Foreclosure Sale scheduled for XX/XX/XXXX, and a formal Notice of Error pursuant to Regulation X ( 12 C.F.R. 1024.35 ) under the Real Estate Settlement Procedures Act ( RESPA ). PennyMac is currently moving forward with a foreclosure sale on a property in which they have failed to provide proper legal notice to the lawful deed holders, misapplied thousands of dollars in overpayments, and refused to communicate with confirmed successors in interest. We demand an immediate postponement of the foreclosure sale until XX/XX/XXXX, as the property is currently under a fully executed sales contract to satisfy the debt in full. 1. Failure to Recognize Successor in Interest and Provide Notice The property was originally purchased utilizing a VA loan by my late father, XXXX XXXX XXXX, and myself, XXXX XXXX XXXX. I have been legally on the deed since XX/XX/XXXX. Following my father 's passing, ownership remained with me, and my husband ( XXXX XXXX and mother-in-law were subsequently added to the deed. This is a matter of public record. Despite our lawful ownership, PennyMac has failed to send any certified foreclosure notices or official correspondence in our names. Furthermore, PennyMac representatives recently refused to speak with my XXXX and claimed no knowledge of who was on the deed, forcing me to fax proof of ownership on XX/XX/XXXX. Proceeding with a foreclosure sale without providing proper statutory notice to the deeded owners is a severe violation of state and federal law. 2. Misapplication of Funds and Refusal of Payments When the mortgage was transferred to PennyMac, the monthly payment was increased from {$900.00} to {$1200.00}, allegedly due to an escrow shortage regarding taxes and insurance. After experiencing a single late payment, our family began paying {$1400.00} per monthan overpayment of {$200.00} each monthto cure the delinquency. We remitted this overpayment of {$1400.00} consistently for over a year. PennyMac has failed to account for where these extra thousands of dollars were applied. Instead of applying these funds to cure the account, PennyMac suddenly began rejecting and returning our full monthly payments without explanation, intentionally forcing the account into a deeper default while refusing to offer loss mitigation options to my XXXX mother-in-law who was managing the account. 3. Current Executed Sales Contract We found out about the impending XX/XX/XXXX foreclosure sale completely by chance XXXX XXXX ago. We immediately took action to protect the property and have successfully placed the home under an executed sales contract to sell the property. The closing of this sale will completely satisfy the underlying mortgage debt. Demands for Immediate Action : 1 Postpone the Foreclosure Sale : We request an immediate extension of the sale date to XX/XX/XXXX, to allow the lawful sale of the property to close and the loan to be paid off in full. 2 Provide a Full Accounting : Provide an immediate life-of-loan payment history detailing exactly where the XXXX XXXX monthly overpayments were allocated for the past XXXX months, and why standard payments were subsequently rejected. XXXX Assign a Single Point of Contact : Assign a dedicated loss mitigation representative who is authorized to speak with me and my husband to facilitate the payoff quote for our upcoming closing. Please be advised that a formal complaint detailing these structural notification failures and fund misapplications has been filed with the Consumer Financial Protection Bureau ( CFPB ). We are prepared to pursue immediate emergency injunctive relief in court to halt this sale if PennyMac chooses to proceed illegally. Time is of the essence. Please contact me immediately at the phone number or email address listed below to confirm that the XX/XX/XXXX sale has been paused. Sincerely, XXXX XXXX XXXX XXXX XXXX

Company response to consumer: Closed with explanation