Frequently Asked Questions | Pennymac (2024)

mortgage relief & assistance

Will my credit be affected by accepting a trial period payment plan or a loan modification?

Yes. Staying current on your payments is the best way to protect your credit. If you enter into a modification, your credit may be negatively affected. Your loan will be reported as paying under a partial payment plan during the trial period, and as modified after the final modification agreement is signed, notarized and returned. In addition, if you’re behind on your payments when you start your trial, your loan will continue to be reported as “delinquent” until your loan has been permanently modified, even if you’re making your trial payments. Credit scores are determined by a customer’s credit history and are not controlled directly by Pennymac. Our commitment is to accurately report the status of all our customers.

My property has been damaged due to a natural disaster. What should I do?

If you've been impacted by a natural disaster or property damage caused by an accident, click here to learn more.

What are the basic eligibility requirements for a loan modification?

A loan modification may be an option if: you are ineligible to refinance, you are facing a long-term financial hardship, your monthly mortgage payments are no longer affordable, you are behind on your mortgage payments or likely to fall behind soon, and/or you have the willingness and ability to make reasonable monthly mortgage payments.

Will Pennymac perform an escrow analysis when completing a loan modification?

Yes. Lenders perform an escrow analysis to determine the escrow payments prior to establishing a trial period payment, taking into consideration the tax and insurance payments that may come due during the trial period.

My loan is currently in foreclosure. What happens next?

A forbearance plan may be an option for you, even if you are currently in foreclosure. Typically, a loan is referred to foreclosure at or around the 120th day of delinquency, unless the loan is being evaluated for a loan modification or other foreclosure prevention program.

A repayment plan may be an option for you, even if you are currently in foreclosure. Successful completion of your repayment plan may help avoid a foreclosure sale while giving you time to bring your loan current.

A modification may be an option for you, even if you are currently in foreclosure. Successful completion of a modification may help avoid a foreclosure sale while giving you time to bring your loan current.

How do I apply for a loan modification?

Pennymac offers a number of modification options. Click here to learn more about loan modifications.

I need payment assistance as a result of a natural disaster or property damage?

A repayment or forbearance plan may be a payment assistance option for you. Successful completion of your repayment or forbearance plan may help avoid a foreclosure sale while giving you time to bring your loan current. Please visit our Property Damage & Payment Assistance page here for more details.

Am I eligible for a repayment plan?

You can contact Pennymac today to speak with a representative who can determine if you pre-qualify for a repayment plan or other home retention option. Please be prepared to provide verbal financial information concerning your current income and expenses.

Will a repayment plan affect my credit?

Yes, a repayment plan can affect your credit. Every plan is unique, so it may be best for you to reach out to your single point of contact to learn how your specific plan may impact your credit. Please note, Pennymac does not control your credit score. We recommend that you contact the credit agencies for information on how the repayment plan may impact your credit.

What is a repayment plan, and how can it help my current situation?

A repayment plan allows you to catch up on your missed payments over time while continuing to make your current payments. If you qualify for a repayment plan, we can spread your past-due amount over an agreed upon term and add it to your current monthly mortgage payment in order to bring your loan current. By exploring a repayment plan option, you are working on finding a solution to your temporary hardship so it does not have long term effects. No further late charges will be assessed on your loan as long as you make your payments on time.

What should I do if my loan is scheduled for foreclosure?

If you’re in foreclosure proceedings or your home has been scheduled for a foreclosure sale, contact Pennymac immediately so we can discuss your available options. You may also want to take advantage of HUD-approved housing counseling services. You can call the Homeowners Preservation Foundation hotline at (888) 995-HOPE to speak with a HUD approved Housing Counselor in your community. In order to protect your rights under applicable foreclosure law, it’s important that you continue to respond to any foreclosure notices you may receive. We encourage you to contact a lawyer or housing counselor to learn more about the legal consequences of foreclosure.

What is a trial modification or trial plan? What happens if I don't successfully complete the trial plan?

The purpose of the Trial Period Plan is to show that you're willing and able to make the modified monthly payments. The trial period lasts a minimum of three months. If you qualify, we'll send you a Trial Period Plan Notice explaining the terms and amount of your payments. It will be based on our estimate of what your monthly payments would be with a permanently modified loan. Your Trial Period Plan becomes effective when you make your first trial plan payment. Payments can be made online using the One-Time Payment option on this website. You must make each Trial Period Plan payment in a timely manner, in the amount specified in the notice, in order to receive a permanent modification. If your original loan payment does not include amounts to pay your property taxes and/or homeowners insurance, an escrow account will be created and those amounts will be added to your monthly payment. If you’re unable to successfully complete the Trial Period Plan to receive a permanent modification of your mortgage, you may need to consider options that involve relocation to a more affordable home. If your home is currently worth less than the amount remaining on your loan, you may be able to either sell your house through a short sale or sign over title to your home to your lender through a deed in lieu of foreclosure. These programs usually include relocation assistance payments to help you move to a more affordable home.

I've made all my payments during the trial period; what happens next?

To be approved for a permanent loan modification, you must successfully complete your Trial Period Plan, complete housing counseling if you have been asked to do so and return any additional required documentation in a timely manner. After you're approved, you'll receive a letter and Modification Agreement defining the changes to your home loan. You will need to sign the Modification Agreement in front of a notary and return the notarized executed agreement as soon as possible, but no later than the deadline date listed on your documents. Your modification only becomes permanent after Pennymac receives the executed agreement and verifies accurate signatures and notary. Until then, we strongly encourage you to continue making payments in the same amount you paid during your trial period. Please note: Once your loan is permanently modified, your new monthly payments could be higher than your Trial Period Plan payments.

What if I do not qualify for a loan modification?

Depending on the timing, we will try to work with you on another loss mitigation option, which may involve relocating to a more affordable home.