Consumer complaint received 2021-12-02 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — 
Company: PENNYMAC LOAN SERVICES, LLC.
State: OH

Complaint narrative:
My complaint is more geared towards lack of informing mortgage holders about not qualifying for any assistance for deferment of the COVID forbearance amounts if you've had a modification. In addition to the complete lack of communication/improper communication. 

We requested a modification in XXXX. Our three trial payments were XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX. Once the trial payments were completed the new modification amount was supposed to be XXXX per month. We never received a document confirming the trial payments were completed and our modified payment amount was now the new amount moving forward. In addition to the amount that was supposed to be put to the end of the loan from the modification was never done according to our statements. 

XX/XX/XXXX we enrolled in the COVID forbearance plan and received a letter dated the XXXX confirming approval and that our mortgage was in forbearance. Each one of our statements reflects the modified mortgage payment was not the amount being calculated through the forbearance, they continued to calculate the previous mortgage payment amount. 

During our forbearance we received letters in bold print underlined stating at the end of our forbearance the amount owed would not all be due at once. No other statements made anywhere else on the document indicating there were any disqualifying factors or depending on the type of mortgage you held. 

We received a letter stating the forbearance was over XX/XX/XXXX. When that date came around we hadn't received any communication as to what was next and what we were supposed to do from this point moving forward. I was worried and reached out to see what was next? 

When I contacted PennyMac I was advised a {$1400.00} payment had to be made to qualify to have the deferment for the COVID balance. Advised I would call right back when my wife was home from the store to double check we could proceed. I called back about an hour later and scheduled the payment. After we setup the payment the system wouldn't allow the representative to complete the deferment process and stated our loan didn't qualify. 

After speaking to managers and the managers reviewing the account they stated we didn't qualify due to a missed payment. I took some time to review my mortgage account and called back to advise our trial payments were completed and we didn't miss a payment. Also to advise we never received notice about the modification trial payments being completed even though they were done. 

PennyMac advised they could see the modification completion document. I advised I never received it, it is not available to view on my portal with all other notices or statements as I went through every one of them. My modifications documents completed in general were not viewable online at all. I had to request a copy be issued of anything pertaining to the modification. 

PennyMac now stated because we had a modification at all we do not qualify for the deferment and are responsible for interest on the COVID forbearance amount.

1. ) When we enrolled into the COVID Forbearance nobody from PennyMac ever advised that if we did proceed at that time we would not qualify for a deferment and our modification would end. We also would never qualify for another modification either. 

2. ) Even though the rep was stating she could see the document advising it was complete that I never received. They still charged the normal amount during the forbearance and didn't finalize the process.

3. ) They rep advised the amounts calculated during the COVID forbearance was calculated at the {$1300.00} modification amount but my statements clearly show how much was charged monthly and that is not the amount. So if that's true then my statements are also wrong.

4. ) I asked the representative why they never advised that something like this could happen and why they sent us letters saying the exact opposite? The response was " we didn't know what we would require '' but yet the expect for us to immediately be responsible to pay a {$30000.00} amount or lose our home. The other option they advised was paying {$22000.00} and they'll spread the rest over six months on top of our regular payment. We found that out. after the 4th phone call to them. Which isn't even reasonable or a for sure thing according to them. 

5. ) We applied for a modification of some kind as advised by their representative. In the request we stated we could surly pay the {$30000.00} in payments over a 12 month period while doing our regular payments. Which is more than reasonable with all circumstances surrounding this situation. I advised them we have XXXX children in the home and my mother in law who just had XXXX XXXX XXXX. That we would have nowhere to go. We tried negotiating something with them to work anything out, they not only declined out request but didn't give a care in the world and made no effort to resolve this issue at all. 

6. ) We received a digital appraisal from them due to sending the modification application. It states in accurate information about the property listing it at only XXXX acres when we have XXXX. Even though the appraisal still came back way higher than owed. I contacted them to advise them that our property information was not correct, they never corrected it at all in any way shape or form. 

7. ) The notice shows the COVID Forbearance ending XX/XX/XXXX. Another notice was not sending to customers until XX/XX/XXXX providing " what's next '' Information. Why are they issuing out a notice a week later than when customers first resuming payment would be due, in turn making the customers late since they would have no clue. Some of the options listed can also take an extended amount of time to process and be approved for. This should have been issued no later than a month prior to the COVID Forbearance ending.

8. ) PennyMac and XXXX XXXX are not providing any notice of any kind to mortgage holders on what to expect and not enough notice to any customer to have time to apply for assistance before a Foreclosure would be filed. So many families are going to be foreclosed on because the way they're handling this. XXXX XXXX  has also allowed customers up to 3 modifications with one home loan, but yet they're doing this with ours. 

I'm reaching out hoping that this isn't happening to other families and that someone can step in before a lot of families lose their homes due to the lack of and poor communication. I have felt like I've had to harass them and pry any information from them. 

Our home is XXXX acres XXXX sqft XXXX bedroom and XXXX. In the last year alone our property has jumped in value 3x 's what it's financed for. By foreclosing on our home they would stand to easily double ... .. possibly triple the amount of the outstanding loan amount and turn a profit. It's coming across as they don't want to intentionally work things out with the way everything has been handled. Why have they offered other mortgage holders up to 3 modifications but never completed ours properly, didn't provide proper advisement, and refuse to make any attempt at resolving the issue. 

We also have a HUD approved counseling agency that's been engaged, she is just mind blown with how our loan has been handled. We've been working with XXXX XXXX with XXXX in XXXX XXXX, Ohio. 

How many customers were in a modification when our country shut down that are now getting foreclosed on because of it? There's no way anyone could've foreseen this circumstance and this is not something that should disqualify a mortgage holder putting a family out of a home. 

I advised the XXXX payment they're not reflecting and referring to as late shows on my bank statement. I'm awaiting my banks reply to obtain the ACH confirmation number to compare at this time. PennyMac advised me to upload it in the message center to avoid them from proceeding with any action. However their online system is not functional to allow uploads as of today.

Company response to consumer: Closed with explanation