Consumer complaint received 2025-02-21 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: SC

Complaint narrative:
I have a mortgage with PennyMac. In XXXX of XXXX, XXXX offered a forbearance for assistance while I was a student in school ( a representative reached out to me in reference to a comment on one of their XXXX posts and when I told him the trouble I was having, he offered the forbearance offer ). The understanding of the offer was that I would be required to make a lower payment of an agreed upon amount ( approximately {$480.00} per month ) and I was to check in with PennyMac once a month while in forbearance. If I was to abide by the terms, I would be offered options at the end to put any past due amount back into the mortgage. I inquired regarding credit protection and late fees, of while I was told I would be protected. I accepted the forbearance. Once I came out of forbearance in XX/XX/XXXX, I was told if the loan was XXXX or less payment behind, I would qualify for more favorable options to resolve the forbearance. So I made a fill payment of {$1700.00} on XX/XX/XXXX. My payment was then post dated by PennyMac ( per their representative when I called on XXXX to inquire as to why my payment had not come out of my bank yet ). This caused my past due payment count to be XXXX instead of XXXX while under modification review. So, I was given only one option to to rectify the delinquency, a loan modification. The modification terms was that I would make a lowered monthly payment ( which I did not request ) for XXXX " trial '' months, XX/XX/XXXX - XX/XX/XXXX. During this time PennyMac would report my loan delinquent. Once I fulfilled this trial period, I would be given the modification terms to sign and the loan would be brought current. Only details provided is that my interest rate would not change and they would add 14 years to my mortgage. I was not provided anything in writing that outlined the full details. I asked if I could go ahead and sign the agreement, to prevent taking a horrific hit to my credit ; I was told I have to fulfill the trial period and my delinquency would indeed be reported during this time. They stated there was no protection against this " like there was during COVID ''. I asked about options to pay the past due amount in full. She said " you can, but you'd have to do it in like a week to give us time to work on it ''. I asked why i didn't qualify for the better option, since I was 6 payments behind. She said I was actually 7. I said I made that payment on 1/30. She then proceeded to tell me they actually penalize me an additional payment, so I'm considered XXXX payments behind. Every representative I have spoken with has given me a different explanation. And from the very beginning it appears the are making the rules up as they go along. When I called PennyMac on XX/XX/XXXX to again inquire about where the paperwork was for me to sign, i was told " there is nothing to sign, you just have to start by making the trial payment beginning of XXXX. The paperwork will come after the trial payment ''.

Company response to consumer: Closed with explanation