Consumer complaint received 2025-07-18 00:00:00
Product: Mortgage — VA 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: AZ

Complaint narrative:
My mortgage company, PennyMacXXXX since XXXX of XXXX has not been working with me to assist me in making my loan current. Prior to XX/XX/XXXX I called PennyMac to ask them for assistance because I could see that I was going to have trouble making my payments. The representative told me that they would not be able to help me unless I fell behind. I fell behind and when I asked for assistance they put me on a loan modification to bring me current, during this time I was making payments as scheduled during my trial period and those and make the 3 payments as required. As I made those payments Pennymac continued to report to the credit bureaus that I was behind on payments even though I made the payments as promised. This still impacted my credit score. Again I experienced another hardship and contacted them once again and was told the same thing. I fell behind and asked the state of Arizona to help and thats when they put me in the Hardship Assistance Fund ( HAF ). At that time HAF was going to give PennyMac {$25000.00} to give me a loan modification and bring my account current. PennyMac did not effectively communicate with the State of Arizona because I was the one who had to be the liaison between PennyMac and the state. PennyMac representatives told me at the time that they would have to get the {$25000.00} first before they would even attempt a modification where the state wanted confirmation that a modification would be approved if they gave PennyMac {$25000.00}. Due to PennyMacs inability to effectively communicate with the State of Arizona I eventually was denied for the {$25000.00} going towards PennyMac. I continued to ask for loan modifications and continued to be denied for loan modification because I was told my income was too low when I was making the same amount of money I had been before. I did my research to try to save my house and continued to call and ask Pennymac if i qualified for different programs the government was offering at the time. I was told by representatives that Pennymac has the option to choose which programs they participate in and the program I was inquiring about at the time, I was told I Pennymac was not participating in. I even asked Pennymac representatives if I could make partial payments to the account and was told that if I made any payment that was less then the monthly amount that it would be returned back to me. I was them served with a notice of sale and contacted the Department of Veteran Affairs since they were the ones backing the loan. They on numerous times asked Pennymac to cancel the forclosure sale date. To my understanding Pennymac cancelled the sale date and at that point was trying to put me through the XXXX program. They said that I didnt qualify for that because I didnt make the required payments needed but again I was told that i couldnt make anything other then the monthly payments of it would be returned. PennyMac told the VA that i would bave to come up with almost {$6000.00} to be eligible for the program but that i needed it within a month. I told them that the I couldnt afford that and then magically at that time I was able to qualify for a loan modification but I would have to pay twice as much as my monthly mortgage payment which I was already having difficulty making the payments. After that I was never notified of a new sale date and Pennymac secretly sold my property at auction. I called PennyMac about the sale on XX/XX/XXXX and the representative said well we sent you letters. i told them I never got them and asked if they sent them certified or not and the response was well we sent them. Pennymac did not effectively hold there end by lack of communicating, did not handle the loan efficiently and this caused significant damage to my credit and now gave me a foreclosure.

Company response to consumer: Closed with explanation