During the real estate crises my mortgage was sold 4 times and we eventually ended up with PennyMac. We have paid our mortgage dutifully and on time for over 10 years and we're still under water and struggling to make payments because of Pennymac's claims of escrow shortages .
Since PennyMac has been our mortgage lender I've encountered several problems with our escrow account. We were never late or missed a mortgage payment prior to PennyMac increasing our mortgage payments due to escrow shortages. We contacted PennyMac requesting a loan modification and was told there was nothing that they could do . The first time we received notice of an escrow shortage we took the payment increase, the second time it happened we eventually went into foreclosure.
We were working with a foreclosure prevention company and once PennyMac found out they offered us the loan modification we had previously requested. We've been back on track and making monthly payments on time for almost a year now and we've just received another letter of an escrow deficiency. If we take the additional payment option our monthly mortgage payments will be higher than it was before the loan modification. I spoke with a representative from HARP who was also confused about the escrow problems and mentioned that there may be a mishandling of our escrow account.
Millions of people are working hard to keep our homes due to the real estate crisis and PennyMac is not helping the situation at all. Something has to be done about PennyMac and it's business practices.
Product or Service Mentioned: Pennymac Loan Modification.
Reason of review: Poor customer service.