Consumer complaint received 2025-02-21 00:00:00
Product: Mortgage — USDA mortgage
Issue: Struggling to pay mortgage — Foreclosure
Company: PENNYMAC LOAN SERVICES, LLC.
State: PA

Complaint narrative:
My home was sold at auction by Pennymac on XX/XX/XXXX while I was in active bankruptcy, a bankruptcy that included my mortgage. I believe that the foreclosure sale conducted by Penny Mac and XXXX XXXX was unlawful because the XXXX was active ( Case # XXXX ) and the XXXX XXXX XXXX was included in the bankruptcy. My payments were automatically debited by the trustee and this bankruptcy was active at the time of the sale. Additionally, the sale price for the foreclosure was {$11000.00}. The balance on the mortgage loan was over $ XXXX. How is it possible that I would lose my home while in active bankruptcy and PennyMac purchased the home for just {$11000.00}? I do not understand how this could happen and believe that these actions are unethical and illegal. The XXXX paperwork stated the actual value was {$180000.00} and the purpose of the sale was not to pay off delinquent taxes. I am trying to get some answers because this makes no sense. 

I have owned my home since XXXX. I had worked for an insurance company for 17 years but was laid off during XXXX. During that time I spoke with the agents at Penny Mac and they told me that I qualified for the CARES forbearance and that I could hold off on the mortgage payments until I got back on my feet. I was required to check in with Penny Mac each month to determine how I was doing financially. Finally after one year Penny Mac agents told me that I needed to apply for loan modification so I could qualify for a plan to take care of the CARES act payments that had been set aside. It was a long and difficult process and took monthsat one point they requested 5 years of statements from my former XXXX XXXX ( which seems pretty unusual and not a condition for USDA modification review ) and I was still not able to get a full review completed. I thought Pennymac was REQUIRED to provide access to programs to address the missed payments from the XXXX forbearance but this did not happen and instead a sale date was scheduled on the home in XXXX. At that time I filed bankruptcy so that I could save my home. I had the ability to pay since I had a new job as a school bus driver but Pennymac never gave me a chance. 

I began making the current mortgage payment on top of the bankruptcy payment in XX/XX/XXXX and paid this for the next 5 months. At that time my abusive relationship with my ex ended dramatically, and he truly left me hanging emotionally and also financially. I was not able to keep up with the regular mortgage payments but continued with the bankruptcy payments and requested for my bankruptcy Attorney to wrap these payments into the bankruptcy with the past due payments. However, my bankruptcy Attorney had retired and closed down shop and I had a difficult time contacting him. I engaged with XXXX XXXX to attempt to get a new review for loan modification started but at that time my father was XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX and required immediate XXXX at a hospital XXXX hours away. Due to this event I missed a lot of time from work and was trying to XXXX XXXX XXXX XXXX XXXX  and was distracted by the situation. I did not receive a Notice of Default, I did not know that there was a foreclosure sale date and auction scheduled. The last statement I received dated XX/XX/XXXX stated that I was {$62.00}, XXXX behind, even though I had been in bankruptcy for over 1 year making regular payments. There is no mention of a foreclosure sale date, it just says that this amount needs to be reinstated in order to get out of foreclosure. 
I had no idea the home had sold until I received the paperwork from the sheriff in XXXX. The paperwork indicated that the sale price for the home was {$11000.00}, even though the mortgage statement said I had to pay $ XXXX and that my unpaid principal balance was about {$110000.00} and the value was {$180000.00}. This makes no sense

Company response to consumer: Closed with explanation