Consumer complaint received 2024-08-16 00:00:00
Product: Mortgage — FHA 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: TD BANK US HOLDING COMPANY
State: MD

Complaint narrative:
We were late on our payment for XX/XX/XXXX 's mortgage due to my spouse losing his job in XX/XX/XXXX and me losing mine on XX/XX/XXXX. We applied for a loan modification appeal on XX/XX/XXXX because the revised payment was still not favorable for us based on our current financial position. While we waited for a response to our appeal ( which the bank is still yet to provide ), we scrambled to get ensure that we cleared what was owed which was a total of {$4200.00}. We paid {$4200.00} XX/XX/XXXX, to cover XXXX 's mortgage and late fees, bringing our account to 'current ' status. Knowing that the funds will be 'unapplied ', I called the bank on XX/XX/XXXX and asked them to apply the funds to our outstanding payments. The representative I spoke with confirmed that she will do as instructed. 

Another payment of {$4000.00} was made on XX/XX/XXXX to cover XXXX 's mortgage, bringing us up to date with our mortgage payment. 

To my greatest shock, I recieved a call from the bank on XX/XX/XXXX, informing me that we were 72 days late in payments. I then recieved an email from the credit bureau on XX/XX/XXXX, stating that our account with TD Bank has been classified as delinquent, dropping my credit score from a high XXXX to the low XXXX. 

I called the bank on XX/XX/XXXX and the representative confirmed that we had over $ XXXX in unapplied funds. She mentioned she could see a note in the system from the representative I spoke with on XX/XX/XXXX who noted that the {$4200.00} should be applied to clear our outstanding balance but no action was taken and neither were we informed that this was the case. She mentioned she did not know why this happened. 

I called the bank again on XX/XX/XXXX and this time I asked to speak with a supervisor, hoping to get answers. The supervisor said he does not know why the funds were unapplied despite seeing the notes from previous calls and he mentioned he'd transfer me to loss & mitigation since they were handling our loan modification appeal. The lady I spoke with said she has no information either. Needless to say, this has been a very frustrating process for me. 

I want to know why TD Bank is holding funds that should be applied to our payments even after calling to instruct them to apply the funds to our oustanding. I also want to know why we were not contacted between XXXX and now to inform us that we were late so we could have resolved it before notifying the Credit Bureau - causing my husband and I 's credit scores to drop significantly. 

I followed up on the loan modification application several times becuase it's been well over 30 business days and they still have not made a decision. The representative I spoke with on XX/XX/XXXX informed us that we were still obligated to make our full mortgage payment pending when a decision is made. We struggled to ensure that we made these payments but they neither applied the funds to our account nor informed us that this was the case and after speaking to 4 different people on XX/XX/XXXX, no one seems to know what they're doing apparently.

Company response to consumer: Closed with non-monetary relief