Consumer complaint received 2025-11-23 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: GA

Complaint narrative:
CFPB Complaint Pennymac Loan Services Subject : Mishandling of VA loan after borrowers death, failure to provide required information to an approved Successor of Interest, wrongful lockout of occupied property, damage to property and potential improper foreclosure/sale. 


What happened My father passed away XX/XX/year>. The home he owned is secured by a VA loan serviced by Pennymac. I am filing this complaint because Pennymac has repeatedly refused to provide legally required information even after approving me as a Successor of Interest. They also allowed or ordered an unauthorized entry and lockout of the home while it was occupied, and I have been improperly foreclosed on. 

Timeline of Events XX/XX/year> I contacted Pennymac to notify them of my fathers passing and to begin the Successor-of-Interest process. Pennymac stated they could not provide any loan information, including the past-due amount or instructions for payment. 

XX/XX/year> I provided my birth certificate, drivers license, and my fathers death certificate to Pennymac to establish my legal interest in the property. 

XX/XX/year> Pennymac informed me that I was approved as a Successor of Interest and would receive a letter with : total amount owed reinstatement or payoff instructions next steps No documents ever arrived. 
During this call, I confirmed that the house was occupied. 

XX/XX/year> I submitted additional Estate documentation confirming my legal interest. Pennymac informed me that the foreclosure sale was already scheduled for XX/XX/year>, even though I was still waiting for information required to bring the loan current. 

XX/XX/year> I called again to request the amount needed to reinstate the loan. Pennymac stated that a packet with forms and instructions would be mailed to me. No packet ever arrived. 
I again informed them the property is occupied. My sister spoke to Pennymac on this same day and was advised a packet would be sent to her as well, but she didnt receive anything. 

XX/XX/year> Unlawful Lockout A person identified as XXXX XXXX trespassed entered the home without notice or permission, damaged property, changed the locks, shut off the water, disconnected the water heater, and posted signs on the window. 
The phone numbers on the notices led to people who had no knowledge of my address or why the home was entered. 
We were denied access to our property for nine ( 9 ) days. 

XX/XX/year> I called Pennymac again to report that no documents had been received. A representative named XXXX XXXX ext. XXXX ) stated Pennymacs system showed no documents had been sent to us in months. XXXX confirmed Pennymac didnt mail any documents ( the documents promised ). Again, I informed them that the home was occupied. 

XX/XX/year> The HOA lawyers, myself and others attempted to contact XXXX XXXX but could not reach him. Later that day, a neighbor informed us that our home had allegedly been sold by the mortgage company. Pennymac was closed, so I could not confirm this. 


Why this is a problem Pennymac : Failed to provide required loan information to an approved Successor of Interest. 

Prevented me from reinstating or assuming the loan by withholding the amount due. 

Allowed or directed an illegal lockout of an occupied home, which is prohibited by federal mortgage servicing rules. 

XXXX have foreclosed or sold the property before foreclosure date of XX/XX/year> while refusing to provide the information needed to stop the foreclosure. 

Failed to send documents they repeatedly claimed would be mailed. 

Disregarded multiple confirmations that the property is occupied, not abandoned. 

These actions violate CFPB mortgage servicing rules, including : Successor-of-interest rights under Regulation X ( 12 CFR 1024.36 & 1024.38 ) Notice and communication requirements Protections against wrongful property preservation actions on occupied homes Potential violation of VA servicing requirements

Company response to consumer: Closed with explanation