Consumer complaint received 2026-01-07 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: TX

Complaint narrative:
Company : PennyMac Loan Services Product : Mortgage / Loss Mitigation ( Deed-in-Lieu / Short Sale ) Issue : Improper foreclosure activity during active loss mitigation review ( dual tracking ) Under XXXX C.F.R. XXXX, I submitted a complete loss mitigation application for a XXXX of Foreclosure ( XXXX ) to PennyMac. While my application was actively under review, PennyMac generated and served a foreclosure sale notice scheduling a XX/XX/XXXX salemore than XXXX  days after my application became complete. PennyMac never issued the required completeness or incompleteness notices and later denied the XXXX  solely due to timing, a timing issue created by XXXX own delay and continued review.. 

XX/XX/XXXX PennyMac declined my short sale and referred my loan for XXXX ( XXXX ) review. 

XX/XX/XXXX I submitted the final document PennyMac requested for my XXXX application. 
After this submission, my file was assigned to a loss mitigation representative, indicating the application had moved into active loss mitigation review. PennyMac also requested HOA documentation and initiated a title search, further confirming active processing. 

XX/XX/XXXX XXXX generated a foreclosure sale notice scheduling a foreclosure sale for XX/XX/XXXX. 

XX/XX/XXXX I received the foreclosure sale notice by mail. 

XX/XX/XXXX ( after sale notice ) PennyMac continued communicating with me regarding the XXXX, including document requests and review activity. 
At no time did PennyMac issue written notice stating that my application was complete or incomplete. 

Subsequent Denial PennyMac ultimately denied the XXXX  solely because the foreclosure sale date was too close. 
PennyMac stated foreclosure would not be postponed even if the XXXX XXXX were resolved, without providing a legal basis. 

Why This Is a Violation Under XXXX C.F.R. XXXX ( XXXX  / Regulation XXXX  ) : An application is considered complete when the servicer has received all documents it requested and the file moves into active loss mitigation review. 

Once a complete application is submitted more than XXXX  days before a scheduled foreclosure sale, the servicer may not conduct a foreclosure sale while the application is under review. 

The servicer must issue timely written notices stating whether an application is complete or incomplete. 

A servicer may not run out the clock through delay and then deny loss mitigation on timing grounds created by its own actions. 

In my case : My final requested document was submitted on XX/XX/XXXX, more than XXXX  days before the scheduled XX/XX/XXXX sale. 

XXXX assignment of a loss mitigation representative, title search, and continued communications demonstrate that my application was actively under review. 

PennyMac never issued the required completeness or incompleteness notices. 

PennyMac continued XXXX communications after issuing the foreclosure notice, then denied the DIL solely because the sale date was too closea condition PennyMac itself created.

While sending a foreclosure notice may be permissible, conducting a foreclosure sale while a complete loss mitigation application is under review would violate the dual-tracking prohibition unless a proper decision is made and any appeal rights are exhausted. 

Harm Caused Loss of meaningful loss mitigation review due to XXXX delay and failure to issue required notices. 

Improper foreclosure pressure during active loss mitigation. 

Denial of relief based on timing caused by XXXX own servicing actions. 

Resolution Requested ( Specific Relief ) I respectfully request : Immediate executive-level review of my loss mitigation file. 

Reinstatement of my XXXX review to the status it held prior to the improper foreclosure scheduling, or permission to proceed with a short sale. 

Immediate pause of all foreclosure activity while my loss mitigation options are reviewed in full compliance with XXXX C.F.R. XXXX. 

A written explanation detailing : The date PennyMac considered my application complete or incomplete, Why required notices were not issued, and The basis for denying relief solely on timing grounds. 

Consideration of appropriate corrective action to remedy the improper dual-tracking and servicing failures described above. 

Supporting Documentation I am prepared to provide : Proof of document submission ( XX/XX/XXXX ) Foreclosure sale notice Loss mitigation communications showing continued review after the sale notice Servicer is REQUIRED to do :

Company response to consumer: Closed with explanation