Consumer complaint received 2025-07-31 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — An existing modification, forbearance plan, short sale, or other loss mitigation relief
Company: PENNYMAC LOAN SERVICES, LLC.
State: CA

Complaint narrative:
Summary : PennyMacs failure to process a timely short sale caused significant financial harm and obstructed my ability to fulfill my fiduciary responsibilities as Trustee of my late fathers trust. Despite repeated contact beginning inXX/XX/XXXX, PennyMac delayed recognition of my Trustee authority, gave misleading instructions for submitting documentation, and failed to act on a complete short sale package submitted on XX/XX/XXXX. This resulted in a missed short sale closing and forced me and my co-trustee to personally fund a ~ {$34000.00} shortfall to avoid collapse of a legitimate real estate transaction. 

Detailed Timeline of Events : XX/XX/2025 : I contacted PennyMac and was advised that an email would be sent to allow submission of Trustee documentation. That email never arrived. 

XX/XX/2025 : I called again and was told the email could take up to three business days and to check spam folders. 

XX/XX/2025 : Still no email. I called and asked if documents could be sent another way ( fax/email ). I was told the only acceptable submission method was replying to the original email which I never received. 

Early XXXX : We received an unexpected offer of {$410000.00} on the property and entered escrow with a scheduled closing of XX/XX/XXXX. 

Between XX/XX/XX/XX/XXXX: I made multiple additional calls and was told my case had been escalated, but I received no confirmation or assistance. 

XX/XX/2025 : A representative finally informed me ( for the first time ) that documents could be submitted via fax or online portal. I immediately submitted the full short sale package through the portal, including : Death certificate Trust certification My ID Executed offer Letter requesting short sale consideration and expedited review Same day ( XX/XX/XXXX ) : I requested that the buyer extend the closing date by 2 weeks to XX/XX/XXXX. The buyer agreed, but clearly stated there would be no further extensions. 

XX/XX/XXXX & XX/XX/XXXX : I called PennyMacs customer service line ( XXXX ) and was told the case was still being reviewed with no timeline for response. 

XX/XX/2025 : I spoke with a representative named XXXX in the Short Sale Department who stated, Theres no way this will close tomorrow. He claimed they were still requesting documentation to verify that the property was held in the trust despite the recorded deed being in the trusts name and all documents being submitted over two weeks earlier. When I reminded him of the deed, he said, Im not a lawyer. * Deed attached Resulting Harm : PennyMacs delay and failure to engage caused the short sale to fail. 
I was forced to personally fund a shortfall of {$32000.00} to ensure closing on XX/XX/XXXX, as the buyer refused to extend further. 
I received no formal acknowledgment, no contact from the short sale team, and no decision on the submitted package until the day before closing too late to act.

Company response to consumer: Closed with explanation