Consumer complaint received 2024-03-25 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: PA

Complaint narrative:
I have a major problem with my mortgage company Penny Mac. I have owned my home for XXXX years and never had a problem making the mortgage payment until last year when XXXX and a serious case of XXXX kept me out of work for a full month. I have a USDA loan backed by the government and Penny Mac is supposed to provide options for struggling homeowners to address their delinquent payments. Penny Mac has denied access to these options and despite multiple attempts to try and get a review or program considered I am turned down and told that the only option is full reinstatement which is currently about {$9000.00} which I do not have. A sale date has now been set for XX/XX/XXXX. After missing one payment I was able to make the following months payment and I opened a new bank account and added Penny Mac in as automatic debit for the mortgage payment each month. I had also changed my phone number and did not receive any calls or notifications from Penny Mac relating to the mortgage payment. Apparently these payments were NOT being deducted from my bank account and once I realized it ( after 3 months ) I began frantically contacting Penny Mac to try and work something out. I tried to make 5 payments at once {$5400.00} to get back on track in XXXX but was told that was not enough money and that I needed reinstate the full past due amount. So I tried to engage with the loss mitigation department and eventually they sent me the forms to fill out but then I became XXXX XXXX XXXXXXXX again and was out of work for two months. Once I was back on my feet I contacted Penny Mac to apply for homeowner assistance options but on multiple occasions I was told that option was no longer available and I must pay back the full past due amount. 

I have worked as a XXXX XXXX XXXX  on and off for the last 10 years. I had built up my own XXXX XXXX XXXX which was doing so well that I put XXXX on hold but then XXXX hit and I lost almost all of my customers within a year. I struggled but was able to get back into XXXX and keep up with the mortgage payment. My fiance now lives with me and he works in XXXX XXXX and makes a good living and between the two of us we have more than enough money to make the monthly mortgage payment. The problem is that since the issue began in XXXX XXXX XXXX Penny Mac has obstructed the process and denied access to government homeowner assistance programs that they are required to offer. This is an avoidable foreclosure, I have the ability to pay and have attempted to pay but have been unable to cut through the red tape at Penny Mac. 

We received foreclosure paperwork from Penny mac and their Attorney but we never received information about the state mediation program, which Penny mac is required to provide and offer. I dont understand why this is happening to me ; I have the ability to pay, I have 75 % of the past due amount in my bank account to try and resolve this matter but I just run into a brick wall with Penny Mac

Company response to consumer: Closed with explanation