Consumer complaint received 2025-07-06 00:00:00
Product: Mortgage — USDA 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: IN

Complaint narrative:
This is in regards to Penny Mac, I have held a mortgage with them since XXXX, In XXXX was the first time I had ever been late with payments. My identity was stolen through the equifax breach, my significant other of XXXX yrs passed and then I had to fight his XXXX boys in which I raised ; to save my house from being partitioned. I accomplished all that but during all that and having to raise XXXX for payoff I got behind on my mortgage. I received help through Indiana HOPE they paid 6 months to get the mortgage current at the same time I was getting a modification. I was approved and went onto the set payments, as I look back now not sure why my payment went up from {$610.00} to $ XXXX month considering any back payments were paid in full by the HOPE program. In XXXX of XXXX I was very sick and got behind on my mortgage. I contacted Penny Mac in XXXX to find a solution to this at that time I was behind 2 months. I was told to put in for a modification, I explained that technically I was on a modification and Penny Mac told me to do another one ; this is what I did. Now I knew that Federal Law requires the servicer to wait until the loan is 120 day delinquent before moving forward into pre-foreclosure status. I have not up to this point received any letter or notice of a default or anything encouraging me to obtain assistance from a mortgage foreclosure counselor, or to inform me of my rights. ( ind code 32-30-10.5-8 ( XXXX ) Throughout the process of the modification I was notified three different times that I needed to send in my profit and loss statement. I did send it ; with the application and every time they notified me they needed it, .The last notification I got I went online to check my documents that had been submitted, well everything was gone. I called asked if they received the last profit and loss, was told no. I told her that I went to submit it again that I could not the document upload was disabled and so was the email messaging. I had to snail mail it and she gave me a email address to send to as well. The email address was wrong because I called the very next day to make sure the email was received it was not ; come to find out the address I was given was wrong. 
Now Every time I contacted Penny Mac I never talked to the same person, I was asked every time if I was still in the home, I would tell them you don't know? You are charging me {$20.00} property inspection every month sometimes every XXXX weeks. 
Fast forward to XX/XX/XXXX, I was denied a modification yet never received notification until XX/XX/XXXX, when I called to find out the reason I could not get a straight answer, I was told from one person that I was denied because I defaulted on a previous modification. I said no I am on a modification now I have only had one modification and then this one I was just denied for, she argued with me I told her I wanted a supervisor. The supervisor came on and told me I was denied because my debt to income was to high. I asked him how can that be I have less debt and the same income I did when I got the modification I am on now. He said for me to resubmit the financial page of the application with the new debits and income. I asked him about why all my documents I had submitted where gone, he refused to answer, I asked to have everything sent to me via email or snail mail he refused to discuss saying we are only here to discuss the denial, he would not even discuss any alternatives and kept insisting I have had 2 other modifications beside the current one and I defaulted on one. That went nowhere that's why I asked for all previous documents, he refused to discuss. 
I explained to him that I was in contract to sell the house and the closing date should be in XXXX. The supervisor told me that was not a option and foreclosure will be pursued. He told me to resubmit the financial page of the application I did so immediately. Again I waited forever to hear anything from Penny Mac, I finally received a call stating every thing was in order and I do not need to do any thing that I will be notified by XX/XX/XXXX of any decision. 
On XX/XX/XXXX I still had not heard anything so I contacted Penny Mac, and was the told then I was denied again for the very same reasons, I was also informed that while on a modification you can not apply for another, I asked why was I told to put in for one, and why wasnt I given any other options. She could not give me a answer. So all this waiting and waiting was just to get me further and further behind? That way I would have a larger amount to come up with? No answer she did tell me to avoid foreclosure I would need to make a payment of {$1300.00} because the loan must be in default 120 days, She also told me I could appeal the denial and submit through the document center. I appealed on that day XX/XX/XXXX. 
Federal law requires the servicer make live contact with you. Make reasonable efforts to contact you by phone, or in person no later then 36 days of delinquency to talk about loss mitigation options and again within 36 days after each payment due date for as long as your delinquent, even if they previously spoke to you. Servicers after the second missed payment are also required to work with borrowers who are having trouble. I never received any of that. 
I finally was notified XX/XX/XXXX that my appeal was denied and there wasnt anything that could be done, at that point I was 6 months behind. I offered to pay 2 months payments {$1200.00} that friday ( 2 days ) and a full payment every 2 weeks of {$640.00} for the current months payment due and to catch up on the payments behind, with the last and final outstanding payment XX/XX/XXXX and the mortgage remaining current for XXXX, XXXX, XXXX and XXXX. I was told that they could not do that and that they would not take any payments at all, only a lump sum of {$6100.00}. I was taken aback, at that point I was behind only the amount of {$4500.00}. I was told that there were property inspection fees, late fees, attorney fees, and filing fees for foreclosure. I was not even in foreclosure, I had not been notified of a foreclosure and the modification appeal I was currently obtaining stopped going forward with any foreclosure proceedings. 
I asked to talk with not her supervisor but her supervisors supervisor, I asked the gentleman why I was not notified and why they would not take payments to get the mortgage current, he informed me that I had been in foreclosure since XXXX and that the note was accelerated I couldn't believe it, he told me to put in another modification to keep the foreclosure from proceeding until the house was sold. So I did. 
The consumer Financial Protection Bureau, which the Dodd Frank Wall Street reform and Consumers Act of XXXX, issued mortgage servicing rules that went into XXXX XX/XX/XXXX after being codified into Federal Law prohibits dual tracking. Servicer can not initiate foreclosure until borrower is more then 120 days delinquent on the mortgage obligation. If the borrower submits a complete loss mitigation application and the application is pending the servicer can not start foreclosure. If all required paperwork is submitted by borrower ; foreclosure can not start until the servicer informs the borrower that they are not eligible for any loss mitigation options and any appeals the borrower has made has been exhausted 12 CFR 1024.41 ( 2025 ) Penny Mac has done none of the requirements Federal and State law mandates, nor have they given any loss mitigation option to me. Common loss mitigation consist of loan modification, forbearance agreement, repayment plan, short sale, and deed of lieu. I was never given any of those options, I called to mitigate the problem and I put in for modification and I was denied a repayment plan. I was never given a option for forbearance. 
I was never notified of the foreclosure filing except when I received a letter from XXXX  XXXX XXXX XXXX XXXX, I spoke with them I was told the mortgage note had been accelerated the amount due was {$74000.00} and payments are not an option. I asked how can the note be accelerated when I had not been notified, technically at that point because of the modification any foreclosure action could not commence until the modification and appeals process was denied. There was never a pre-settlement conference that by Indiana foreclosure laws borrowers have a right to have, along with pre-foreclosure notice. 
Because of Penny Macs non conformance of Federal and State laws, I was forced to sell my home I have lived in for over 13 years, and of that I had to basically give it away. 
In XXXX I asked for a pay off statement, the notice was dated XXXX XXXX the payoff was good through XX/XX/XXXX, funds received after that date are subject to an additional {$8.00} of interest per day. 
The payoff statement was as follows : Principle Balance {$71000.00} Interest due as of XX/XX/XXXX {$1800.00} Pro Rata XXXX Annual Premium {$280.00} Foreclosure Fees {$1000.00} Foreclosure Costs {$260.00} Property Inspection Fees {$100.00} Late Charges {$120.00} Non-Suffient Funds {$25.00} Release Costs {$22.00} Total Payoff as of XX/XX/XXXX {$74000.00} How can I be charged anything for foreclosure when I was still in modification and was never notified by certified letter, and never received a breach letter. 
I then received another payoff letter due to the fact that my house was in contract to close XX/XX/XXXX. 
The payoff letter was dated XXXX XXXX this was good through XXXX XXXX and any funds received after that date was subject to {$8.00} a day. 
The payoff statement was as follows : Principle Balance {$71000.00} Interest Due as of XX/XX/XXXX {$2300.00} ( {$8.00} x 41 days = {$340.00} why is it more ) ( XXXX should be {$2200.00} ) Pro Rata XXXX Annual Premium {$46.00} Escrow Advance Balance {$2800.00} ( I did get refund fromthe Insurance co. Dont know where the balance of {$1000.00} was for I had to pay property taxes at closing ; again I was charged double ) Foreclosure Fees {$2100.00} ( why double? ) ( should not even be in foreclosure ) Foreclosure Cost {$760.00} ( why the extra {$500.00} No Foreclosure still in last modification ) Property Inspection Fees {$120.00} Late Charges {$25.00} Recording Fees {$25.00} ( Recording of what ) Release costs {$22.00} Total Payoff as of XX/XX/XXXX {$79000.00} At this point I still was not served with official summons not a pre-foreclosure letter, never got a letter stating I was in default or a breach letter. I finally got a letter of denial from the modification I was told to do in XXXX. I received that denial XX/XX/XXXX well after the house was sold. 
I called the XXXX XXXX after the closing XX/XX/XXXX, I was wanting to know the detailed charges that I had to pay at closing. They would not give me any answers. I asked why I was even charged for a foreclosure costs and fees when I wasn't even in foreclosure, why the loan was already accelerated I was in modification process, I asked about the interest charged as well. As per usual I couldn't get an answer only I was in foreclosure since XXXX, I said XXXX? no I was in a modification at that time and I have not been served with anything, sent any foreclosure notice and I have not even been offered a settlement conference. All the agent could say was contact the attorney. 
So I did, I spoke with a paralegal and I asked her why the charges for attorney fees doubled from XXXX XXXX to XXXX XXXX. She could only say that there were things the attorney had to do. I asked her how was there anything at all to do considering I was not even in foreclosure by Federal Law and State Statute foreclosure can not move forward until all mitigation factors are resolved, I was in a modification process so what things needed to be done. I was told that I had been in foreclosure since XXXX. I asked her for the billable hours that was spent on this. She put me on hold came back to tell me that she would give me the email to the attorney and I can correspond to them that way. I told her no I do not need to talk to them I just need you to send me the billable hours, by law I have a right to them after all I am paying the bill. She hung up on me. 
I have recently reached out to XXXX XXXX XXXX XXXX and talked with a supervisor about my concerns and I that I felt I was owed some money back. He went with the same ol same ol you were in foreclosure.... I asked him tell me why wasn't I notified? he said nothing. I said how does 41 days times {$8.00} equal out to be almost XXXX? where I went to school its only like {$350.00}. So why was I charged so much interest? No reply. I then asked him you put forth a foreclosure before the modification was even decided on then you accelerated the note ; would not allow me to make payments how is that not dual tracking? That is illegal. He said oh is that against the law. I said Yes Under Federal Law, and State Statute. I asked him for a detailed accounting not a vague but a line by line accounting of where the proceeds from closing went. He said he would email me that. This is the XXXX still nothing from him. 
After the identity debacle when Equifax had that breach and my identity was stolen I am trying to rebuild my credit, while I was looking at my report I noticed Penny Mac has reported on my account foreclosure, I was never served and I was never in foreclosure how? My denial for modification did not come until after I sold my house. I disputed the fact that I was not in foreclosure, late yes but foreclosure no. It still shows that ; I have even contacted Penny Mac to have them take the foreclosure reporting off. The account shows paid but the reporting also shows foreclosure, Under the Federal Fair Credit Reporting Act ( FCRA ) 15 U.S.C Section 1681 et seg If the lender fails to report a deficiency as having been eliminated, discharged, or abolished PennyMac has not followed reasonable procedures to ensure maximum possible accuracy of its reporting, the incorrect reporting of a foreclosure and the refusal to take the reporting down violates the FCRA. In Essence, Penny Mac has blatantly violated not only Federal Laws and State Statutes on foreclosure compliance, they have also over charged on fees, and reported incorrect information that has significantly harmed my creditworthiness. Now being I was forced into basically giving my home away selling it at a very low price because Penny Mac negligently violated Ind Code 32-30-10.5-8 ( XXXX ) Consumer Financial Protection Bureau 12 CFR 1024.41 ( XXXX ) ; FCRA ; and CFPB I am homeless and the negligent reporting had caused me undue hardship in that it is impossible for me to find safe affordable housing. One look at the credit reporting I am denied I have no where to go.

Company response to consumer: Closed with explanation