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Loan Mod impossible with PennyMac

Discussion in 'Stop Foreclosure and Tell Us Your Story' started by topgun1, Dec 16, 2010.

  1. topgun1

    topgun1 LoanSafe Member

    I purchased a condo before I was married with a Citi Mortgage first and second. Typical 0 interest 5 year ARM popular in the day. Two years ago I lost my job and started the loan modication process with Citi. After a year of attempting to get a loan mod, I stopped making payment and I was given a trial loan mod within 2 months under the HAMP program. With this 3 month trial loan mod I was able to settle on the 2nd for a small percentage of the amount due. As the end of the 3 months approach I was told that the final loan mod paperwork was in the mail and to keep paying. This went on for approx 4-5 more months. (in this time I also got married and my husband moved into the condo) Then suddenly last spring I received a letter that my loan had been sold to PennyMac. PennyMac refused to accept the loan mod from Citi and required that I reapply. They turned me down twice claiming too little income to meet the HAMP guidelines even though my income was the same as when Citi had approved me for HAMP. I then submitted a 3 loan mod package that include my husbands income and today they rejected me for a third time stating that with the addition of my husbands income we make too much to qualify for HAMP.

    Any advice for the next steps I should take? QWR? Give up and short sell?
    Anyone ever get a loan mod from PennyMac?

    Thanks for your time and advice in advance.
  2. Renoira

    Renoira LoanSafe Member

    I see that you wrote this some time ago and I do not know what your situation is. However, I do know that PennyMac is being run by the same executive that ran Countrywide Homeloans into the ground. They are in business to foreclose, so the deck is already stacked against you. If you are in danger of losing your condo, I would recommend getting advice from a lawyer. This company is known for playing dirty.
    I was with CitiMortgage, also and they have just sold our loan to PennyMac. We are bracing ourselves for a bumpy ride. But if we are destined to lose our home, we are not going without a fight (legal of course).
  3. pwoolfolk

    pwoolfolk LoanSafe Member

    Renoira, my loan was sold from Citi to Pennymac in March also. I'd like to communicate our progress so that we can compare notes. I have an attorney and have been pre-qualified for a loan mod. I'll let you know when I hear more, I hope you will keep me posted on your progress as well. Thanks, pwoolfolk
  4. Renoira

    Renoira LoanSafe Member

    Well, PennyMac just sent us a letter stating that it actually acquired our Loan in February. I know this is not true, because I received a letter from CitiMortgage in mid-March informing us that our loan was in the process of being transferred. CitiMortgage did this after they offered us a temporary modification, which, obviously, they did not intend to follow-thru with, even though we were making payments as requested. PennyMac has not offered to follow-thru with the modification, they have, however, stated that they will accept the modification amount and apply it to our loan. This means that they will accept it as interest only and apply the difference to our principle, making this loan into an ARM loan, even though it is not.

    Their most recent letter to us has stated that we owe $25,000. (we do not, but how do we dispute it?) We are willing to work with them, but we are being steered toward foreclosure and we have no power to stop it, other than seeking legal help.

    I will be more than happy to let you know our progress. I hope yours is more encouraging than ours. If so, I will gain hope from it.
  5. pwoolfolk

    pwoolfolk LoanSafe Member

    My situation is very similar, I was current on my mortgage with Citi but had a reduction in income so I approached Citi requesting a loan mod. Citi only offered me one option and that was to list my property for sale and they would give me a trial payment while they considered me for a loan mod, I hired an attorney because I didn't like the idea of having to list my home for sale since I didn't want to sell it. The attorney submitted an updated loan mod application and Citi accepted it and my 4 trial mod payments, but then denied my loan mod application based on an old NACA submission that was over a year old. I made all 4 loan mod trial payments and at the end of the trial payments was denied the loan mod based on the old NACA submission and told that I owed the monies for the entire 4 months of the loan mod trial payment. I then received a letter from Citi that my loan had been sold to Penny Mac. My attorney is now submitting my loan mod application to Penny Mac. I've been searching the web for information on Penny Mac's rate of approval or denial of loan mods and can't find much. I was told that I have been prequaled for the loan mod, I'll let you know how it goes.
  6. Renoira

    Renoira LoanSafe Member

    Hello Pwoolfolk:

    We have reapplied for the loan modification. I informed PennyMac we are going through a lawyer so that the process can be documented. I have not hear anything yet.
  7. Renoira

    Renoira LoanSafe Member

    Well, after CitiMortgage put us on temporary Modification, they sold our loan to PennyMac, before the temp mod was up. PennyMac refused to honor temp Modification. They told us we could send in payments and they would credit it toward our loan, but they would not put it into writing. We know PennyMac is just a revamped Countrywide, they told us to reapply for a modification, then refused it and told us we needed to go the short sale route. We didn't want shortsale, so our lawyer tried to reapply for mod, that of course, they never had an intention of giving us. Now they have sent us a notice of intent to foreclose.
    These people ought to be in jail, instead they are getting away with it and striping the middle class of their homes and livelihood.
    National Mortgage News - PennyMac Enters into Repo Deal with Citi

    I hope that you are doing better, but I doubt it.
  8. pwoolfolk

    pwoolfolk LoanSafe Member

    Renoira just saw your post from 2 weeks ago, I get weekly updates from my attorney that "my loan mod is in review" nothing else. I will post when I have a different update. I'm sorry to hear your outcome and thanks for posting it. I will post as soon as I have something to post.
  9. badmoomoo

    badmoomoo LoanSafe Member

    Same situation here

    We have been in the "process" with Penny Mac, almost exactly as you have described. Have any of you had any resolution?
  10. Renoira

    Renoira LoanSafe Member

    I suspect that they modifying very few, if any. It is more profitable to foreclose. So they offer us a "mod" that would be absolutely irresponsible of us to accept, and fiscally foolish, then try to innocent infer that they were sincere. I wrote here to confirm or deny for myself that this is what they are doing to others. It is reprehensible what these so-called lenders are being allowed to get away with. I guess when you're best buddies with Tim Geithner, treasurer secretary of the United States, you don't worry about stretching the law a little.
  11. pwoolfolk

    pwoolfolk LoanSafe Member

    Penny mac

    Renoira, good to see your post. I agree 110% PennyMac doesn't seem to want to do loan mods. They keep sending me letters that I have no solution other than to do a short sale or deed in lieu and sending people by me home to take photos. I was unsuccessful in getting a loan mod with the attorney I was using. Now I'm sing LoanModHelpCenter as was recommended on Loansafe. I would never attempt to negotiate with PennyMac personally, they are cagey even when you use a lawyer or loan mod service. My advice to you is to stay on the attorney and/or loan mod service and don't believe anything that PennyMac says over the phone. I have had them lie to my attorney and now they are lying to LMHC. My package was submitted by LMHC after being rejected from the lawyer's submission. After enlisting the aid of LMHC and paying for the rest report, I actually heard from PennyMac that HAMP SOLUTIONS was requesting a review of my loan mod, so I'm hoping and praying that with the government overseeing this, I will finally be approved for a loan mod. I sarted at LMHC with Leonard Bruno - he was great, very knowledgeable and a take charge kind of guy. Unfortunately he is no longer with LMHC and neither is Charlie Rose, so I'm hoping and praying to get my mod approved with the aid of Karen and Mike. I submitted everything PennyMac asked for and then they rejected the letter of explanation and said they would keep the file open until I submitted future bank statements. 10 days after that I got yet another rejection letter saying I didn't qualify and they were closing the file. Unfortunately PennyMac forecloses on people so quickly that there are never enough of us to band together and make a viable complaint against them. If I were all of you I would contact Hamp Solutions and start a complaint and also there was a recent thread on here by Moe about a new organization taking homeowner complaints, I signed up with them as well, maybe if we can continue to complain about PennyMac someone will benefit. I will keep you posted on my loan mod progress. Unfortunately I never seem to have much progress to report. Its been 2 years trying to keep my house and still I'm no further along than I was in the beginning. First Naca, then an attorney, now LMHC. I hope I get approved. Let's keep this thread going in hopes that maybe other PennyMac homeowners will see it and comment, there is stength in numbers.
  12. Renoira

    Renoira LoanSafe Member

    Thank you pwoolfolk, I agree. The more the merrier. PennyMac and other capitalist like them are hiding out under the radar. They purchases loans for PENNIES on the dollar from companies that are under scrutiny so that these companies can hide their evil deeds from public scrutiny. When the large lending corporations sell these loans they collect the insurance on them and write them off, which essentially goes back to charging the people of the United States double and sometimes triple for the same home.

    While they get away with this obscene behavior and make huge profits, we lose our homes.

    Yes, let's put it out there so they can no longer hide.
  13. pwoolfolk

    pwoolfolk LoanSafe Member

    If anyone is interested in the Hamp Solutions contact info it is:please contact the HAMP Solution Center at support@hmpadmin.com or 1-866-939-4469. I have written many letters to President Obama and his wife and since its an election year one of my letters was actually forwarded to Treasury and then to Hamp Solutions. I don't know if it will help, essentially, they contact your servicer/lender and ask them their side of the story, may request documents to review, and only contact you to give you the end result. You don't actually get to tell your side of the story. But maybe if several of us complain about PennyMac it will help. Thanks
  14. pwoolfolk

    pwoolfolk LoanSafe Member

    Renoira I couldn't agree with you more, we as taxpayers will ultimately pay for this. It seems so unfair and it seems as though no one cares, the Occupy Protestors are trying to make a point, as is Mandelman and this site, but its too late for so many homeowners and I wonder if we will be able to last long enough - until someone really does something about this. Its hard to even find good representation in these matters. The banks have the money to fight this better than we do. I wish I had more thoughts on how we can unite and make a difference. But this is all that I can suggest.
  15. pwoolfolk

    pwoolfolk LoanSafe Member

    Hi all, just a follow-up to my ongoing plight to get an affordable loan mod. Its been 10 months since I last posted and I still am being denied a loan mod. I began this battle with Citimortgage back in 2010 and am still at it. I was experiencing a temporary reduction in income and hoping to get early help. That didn't happen and now I'm seeking to get a loan mod based on having sufficient income but am being told (1) I have too much income for HAMP and (2) I owe too much arrears for the HAMP program to work. My lender at the beginning was Citimortgage who very conveniently sold my loan to Penny Mac just prior to the national mortgage loan settlement. penny Mac has rejected any and all submissions by saying the income documentation provided wasn't sufficient. I've involved everyone in my plight from OCC, Treasury, elected officials in Illinois and federally elected officials such as the President and still looks like I'm not going to get a loan mod. I've owned my home for 10 years, was current on my mortgage but realizing that I was facing a loss of income applied for a loan mod. Had I know that this nightmare would ensue I would have just struggled with the mortgage payment. I have an attorney, my second attorney, in fact, but still it seems as though the lender has all the say so. I have yet to find anyone who has completed a successful loan mod with Penny Mac. If there is such a person, please respond to this post, so that I will have something to encourage me. My searches on google have not provided any proof of their loan mod results/ratios. I have lodged complaints with all levels of our government against the way that Penny Mac operates, though the allegedly became a lender to purchase homes and keep homeowners in them, there is no proof that they have done anything other than purchase low and sell high. At this moment I am waiting to hear back from Hamp Solutions, Penny Mac, my attorney and the Treasury Dept. as to what can be done since I have too much income and/or too much debt for the Hamp program. It amazes me how complicated the loan mod software is in terms of income and mortgage debt ratios. If this weren't my home I'd give up but its my home and I've lived here for over a decade and don't want to have to move. Thanks for listening and all suggestions are welcomed.
  16. Cat Damiano

    Cat Damiano Mortgage Wars

    I am so sorry that this has happened to you. We have had members that have involved their states Attorney General and have been successful that way. Have you been able to try that route and what have they told you?
  17. pwoolfolk

    pwoolfolk LoanSafe Member

    Penny Mac

    Hi Cat, yes I contacted the Il Atty gen and they offered to submit a proposal on my behalf. I'm still waiting to hear back. They also said that since Penny Mac wasn't part of the mortgage settlement, they couldn't guarantee any results. What she was proposing was above the guidelines but figured it was worth submitting. In Cook County IL they have set up a Foreclosure mediation counseling session which I attended also. You would think that they are there to mediate on our behalf and to assist us in getting a loan mod, the person I got was very young and basically just asked me questions and input my info. He then informed me that I didn't qualify because my past due, mortgage balance and property value came to 39% and that the program guidelines would not qualify me for the program. I'm assuming that he was speaking of the HAMP program. I then got a response from the Treasury Dept and was told that my new income of 29% disqualified me from the HAMP program as I am able to pay the existing mortgage, I've agreed to pay the existing mortgage or 2% more but the lenders doesn't have to accept that because of the past due amounts. I have written to the politicians, attorney general, president and first lady at least 3 times. Even if it doesn't help me, I'm hoping that it will enlighten the powers that be that the banks don't always want to work with you. You're always told that you shouldn't pay attorneys, you can get it done for free, but every free service I've tried was worth what I paid for it - nothing. I missed the deadline on the Illinois Hardest Hit Loan because the HUD counselor took so much time to submit it that I was too close to the $25,000 ceiling. I know everyone is busy and lost of people need help so it takes a while. My reason for contacting the attorney general's office was to inquire into the fact that I had just signed a forbearance agreement with Citi so that they would review me for a loan mod - I was current at that time - after the review, they denied my loan mod (submitted by an attorney - it turns out that the denial was based on incorrect financial data from 2 years earlier sent in by NACA) - upon bringing this to their attention and requesting that they review the loan mod submission again, my attorney was told that the loan had been sold. By the time the loan was processed into Penny Mac's system - 3 months has transpired and we started all over again with Penny Mac. To date Penny Mac has denied my request 3 times based on not accepting financial documents as being sufficient proof of income but in writing only state that I am denied because of excessive forbearance. I have been in tears many a day dealing with this ordeal. I keep praying for someone to pick up the file and READ it. Each person that you talk to asks you to repeat everything again even though you've submitted 70 pages of documents - so far this time I've made 3 different submissions. I've succeeded in getting Hamp Solutions involved and hopefully the outcome will be favorable - its not easy to stay positive when everyone you talk to is giving you different information. Also, while working on a loan mod with Hamp Solutions involved, Penny Mac served with foreclosure papers. Its been a real stressful two years and counting. I will post again when I have more to post - Not much to post for 2 years of non-stop calling, writing, etc., but I am trying to get them to understand that this is my HOME, a part of my life. Thank God for loansafe - a place where we can come and vent and recharge to fight another day.
  18. Renoira

    Renoira LoanSafe Member

    Good to hear from you Pwoolfolk. I am sorry for your struggles. It is indeed a slow torturous road. I do not know if it will help you, but have your loan documents (filed at the assessors office) checked for robo-signers and any fraud. See if you can have someone check them over for you. PennyMac like many others do not actually have the proper documentation to "own" your loan. In order to "own" your loan they have to have a signed deed of transfer from the former owner. Many times they do not, because they did not "pay" for your loan, it was a free gift from the former lender who probably takes a percentage if PennyMac can recover anything, but they never actually "sold" it or signed it over to them.

    As far as modification goes...PennyMac writes the government agencies that they are "following state and federal guidelines" and these guys buy it. No one leaves their cubicles to really check and they leave us stranded along with the fraud. PennyMac tells a half-truth and we are put in the position in either writing back to expose it, or letting it go because we feel hopeless in getting help. Our government has left us alone to deal with RICO crimes and make deals with the criminals.

    PennyMac, once again, tells us they are considering us for a mod, yet with each consideration they keep moving the bar to some location just beyond our reach:

    "You make too much money" "you don't make enough money" "You are too behind" "if you hadn't filed for bankruptcy" "You're over the Hamp limit" "Our investors don't agree", and so forth and so on.

    Even now as they claim they are considering us for a mod....they have filed a petition with the court for a relief from stay and permission to evict immediately...MERRY CHRISTMAS!

    Oh...and they have done this using fraudulent documents. It will be interesting to see what the courts in California do.

    These pretender lenders need to be prosecuted for the fraud...or else they just keep going with no repercussions while the American people become a nation of homeless debtors, or enslaved employees afraid to take a stand for the truth. (Trust me, there are lots of employees out there that know the truth).

    I never thought I would see this happening in our country. This isn't the same country I was taught about in school.
    Last edited by a moderator: Dec 17, 2012
  19. pwoolfolk

    pwoolfolk LoanSafe Member

    If you read my post you know that I'm going through the exact same thing. I have tried to expose the antics of Penny Mac to my state's attorneys office, the presidential office, the treasury department, hamp solutions, and anyone else who will read my faxes. I was working with Penny Mac on a loan mod - or so I thought - when I got served with foreclosure papers. Since my last post, Penny Mac served me with a foreclosure complaint. I was really shocked, I thought they were still working on my loan mod and I got served. I hired a "defense foreclosure" attorney. I've written lots of letters to elected officials, President and Illinois attorney general. But so far no loan mod. I've talked to people from Hamp Solutions, Money Management International, Illinois Attorney General's Office, Cook County Foreclosure Mediation and none have stated that I qualify for their program. All have submitted proposals on my behalf and I haven't heard back from anyone yet. I plan on writing a letter tp the founder of Penny Mac - he's the only one I haven't written to.

    I'm glad you're still fighting the good fight. I notice that a newcomer has trouble with Penny Mac and in November Penny Mac responded to his thread so I guess that means that Penny Mac is on this site.

    I hope and pray that we get to keep your homes. I agree with you, I would never have thought that in America, we would have to wage a war just to pay an affordable monthly mortgage payment. I will post when I get any news. I pray that it will be good news.
    Last edited by a moderator: Dec 17, 2012
  20. Renoira

    Renoira LoanSafe Member

    Thank you for keeping me posted, and thank you for "complaining". It is those who are silent that make it difficult for us who have chosen to face this fight. So many just walk away defeated, when they have had cause to fight back. We are being cheated plain and simple. Companies like PennyMac are trying to increase their profits based on the fraud perpetuated by themselves and their predecessors. While they call us to count to "pay all we owe", because they fear the "moral hazard" of trying to repair the situation, they themselves do not have to own the fraud that created this ever-increasing mess. I will also keep you posted, however, they have told me that they would have an answer to me by the 21st and I have not yet heard anything.

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