Consumer complaint received 2016-11-06
Company: TD BANK US HOLDING COMPANY
State: GA
Product: Mortgage
Sub-product: Home equity loan or line of credit
Issue: Loan servicing, payments, escrow account

Complaint:
Toronto Dominion Bank ( TDB ) had an impeccable loan client in my parents and, after their passing, their Trust. 
The loan, a 10 year consumer loan with my parent 's house as collateral, originated on XXXX XXXX, XXXX. After my parent 's passing, the Trust ( I am the Trustee ) not only maintained the bank 's collateral property but also invested more than {$150000.00} into improvements. There was a history of continually higher rental leases and continual improvements to the property. 
On XXXX XXXX, XXXX, with a 6 year perfect payment history, TDB arbitrarily nearly tripled the monthly payments. They rose from about $ XXXX to $ XXXX, a figure that was unsustainable for the Trust. There was no attempt to discuss the modification of terms with the estate, just a notification by mail. Requests for a local TDB representative with which to discuss the change in terms were ignored. A TDB contact was provided by mail in a letter dated XXXX XXXX, XXXX, six months after the tripled payment notice. Please note that nothing in the original loan documents allows TDB to change the loan terms due to the passing of the loan holders. 
Nonetheless, the Trust paid the tripled payments for 5 months, through XXXX, XXXX, XXXX, XXXX and XXXX of XXXX. The Trust notified TDB in writing several times, in letters that were acknowledged, that it was listing the property for sale so the loan could be paid off and would continue the original loan payments ( of $ XXXX. ) in the meantime. 
TDB continued to accept these original, interest only payments for six months, though the Trust began to receive legal notices, stating that the account was in default and in danger of foreclosure along with increasingly higher fees and interest being accessed to the account. 
To be clear, the default was a default on the tripled payments. The Trust was committed to continuing the original monthly payments until sale of the house and pay off the loan. 
On XXXX XXXX, XXXX, much to the surprise of the Trust, and against their own self interest, TDB changed all the locks on the house at a time when the house was being shown to prospective purchasers. It posted a notice on the front door to inform buyers and agents that the house was no longer for sale or rent. 
The Trust was also prevented from making monthly payments on the loan at this time. The account had been transferred to the default/loss mitigation department and payments were not accepted. 
TDB 's action kept the house sealed up and inaccessible for one week until the Trust could get a key to get back into the house. The house had been " Winterized '', including turning off the electricity, all the high end hardware on the exterior doors was destroyed and replaced with cheap and mismatched knobs. The sign on the front door that said " This house is neither for sale nor rent. '' remained for a week, looking to potential buyers like the house had been put into foreclosure. 
I put the house back on the market and listed it for sale " as is ''. 
It was only through the Herculean efforts of the Trust and the real estate agent that the house went under contract and closed on XXXX XXXX, XXXX. The purchase price, after TDB 's unwarranted seizure of the house, was {$15000.00} than a previous sales contract that had fallen through due to the buyer 's financing problems. The loan to TDB was paid in full at closing, including the questionable bank fees and interest charges. 
I have retained a local attorney since XXXX XXXX. He has a written agreement from TDB, dated XXXX XXXX, XXXX, for {$3700.00} in " hard cost '' ( destroyed hardware, etc. ) plus his attorney fees of {$3500.00}. This has not been paid by TDB as we are also asking for {$60000.00} in intangible damages for the forced sale of the house and the lower purchase price. After 18 months and no resolution from TDB, I am now requesting your assistance. I have complete back up documentation of the above.

Company response to consumer: Closed with explanation