Consumer complaint received 2023-07-26 00:00:00
Product: Mortgage — VA mortgage
Issue: Struggling to pay mortgage — 
Company: PENNYMAC LOAN SERVICES, LLC.
State: NH

Complaint narrative:
During the month of XX/XX/XXXX, the Covid pandemic impacted my family, and I subsequently became unable to complete regular monthly house payments on time. As a result, on or about XX/XX/XXXX, I entered into a Covid Forbearance Disaster Plan, on my VA home loan, titled " Deferred payment. '' The loan is backed by the VA and serviced by PennyMac co.. The guidelines of the year long program are designed, to avoid late payment penalties and allow for the deferment of regular monthly mortgage payments, which aids individuals in financial recovery. A stipulation of the program was that the original mortgage term would be extended from the already 30yrs. up to 40yrs.. At which time, the deferred/owed monthly payments were to be reconfigured and added into the existing mortgage contract, with no increase in monies or expense over the loan term extension. The forbearance agreement terminated on XX/XX/XXXX, at which point I contacted PennyMac as directed. I was informed that my loan would be modified, and I would soon receive the final Modification agreement, to review and acknowledge. 
At some point during the first week of XX/XX/XXXX, I received a letter from PennyMac outlining a loan modification, titled " Trial plan, VA disaster, streamline modification agreement. '' ( attached ) The agreement reflected a substantial increase in monthly payment ( s ) as well as interest rate, that being approx. {$1700.00} & 4.0 % above my existing loan contract. Upon receiving this letter, on XX/XX/XXXX, I contacted PennyMac and attempted to ascertain the unwarranted increase in monthly payment ( s ) /interest, with no extension in loan term. During the initial conversation I explained that at some point during the month of XX/XX/XXXX I was diagnosed with a condition in which I would be considered XXXX XXXX  XXXX and receive a fixed income from Social Security. I further attempted to explain, my now inability to afford such a considerable increase in monthly payment, as the situation resulted in an approximate decrease in monthly income of roughly {$4000.00}. Regardless, I was repeatedly informed that the aforementioned workout, " Deferred Payment Plan '' had been terminated at the end of XX/XX/XXXX, and was longer available as a solution to my issue. Therefore, I would have to settle for the change in mortgage term as outlined in the mailing. In speaking with several PennyMac employees, I received similar answers, indicating that there were no programs offered to assist me with this situation, other than the one presented. The resounding message, from informational assistant to supervisor, provided three choices ; 1. by the end of XX/XX/XXXX I would be expected to pay all of the deferred monies, ( {$60000.00} ) to bring the loan current, 2. except the substantially increased loan modification as actual, and continue with the increased payment/interest amount monthly and for the entire duration of the loan, or 3. begin foreclosure proceedings after thirty days. While attempting to resolve this matter in a manner of which I could afford, I requested several options, such as paying a lump sum of roughly $ 20k toward the deferred monies, and/or raise the monthly payment to a more manageable amount in order to avoid foreclosure and retain my home. The discussion ( s ) were subsequently terminated with no resolve. 
On XX/XX/XXXX I contacted PennyMac again and partitioned any viable solution to assist with my current situation. While speaking with a supervisor I was again offered the three solutions mentioned above. Additionally, I was informed that if I could pay down the deferred monies to only 4 outstanding payments, ( approx $ 48k ) then they would consider exploring additional options, and if that was not possible, then the mortgage would proceed into foreclosure. At this point, I questioned, if the deferred payment plan was discontinued at the end of XXXX, then why wasn't I accepted into the program? Explaining that my forbearance program ended on XX/XX/XXXX which would have allowed an entire month to process the deferred modification agreement. The answer remained the program is no longer available. 
Subsequently, I have attempted to locate additional remedies to my issue, by researching the VA mortgage assistance, Social Security, and also other state and federal programs, to no avail. 
It should also be noted that at some point in XXXX I had opened a claim with the New Hampshire Home Assistance Fund and the Ahead Program. It was rumored that the organization was allocating tens of thousands of dollars, after having received an exorbitant amount of federal funding, to assist homeowners impacted by the Covid Pandemic. After filling the initial claim, waiting the required time period of 6 months before being able to actually apply, and communicating plus suppling all of the requested supporting documentation over an approximate time period of 16 months, I was denied the $ XXXX that they had earmarked for my deferred payments with PennyMac. At some point in XXXX, ( one month before the funds were actually needed ) I was notified that my home loan of $ XXXX was over the " Conforming Loan Limit '' for homes in XXXX of $ XXXX, therefore the funding was withdrawn.

Company response to consumer: Closed with explanation