Is Manulife bank that terrible ? | Page 2 | Manulife Bank | Discussion forum

I can only speak on my experience. I lost my mother unexpectedly, and took over as executor of her estate. We never talked about money or her assets. So discovering things like a line of credit she borrowed against the family home was surprising. Her investments and this LOC are with Manulife. I continued the monthly payments for this LOC from her Laurentian Bank account, till the QC government provided me with an official certificate of death. It is long process where it just costs the estate money for no apparent reason other than to just take a piece of the pie. All that to say. Once I had the paper work, and estate bank account setup. I notified Manulife by phone about the estate account for auto payments with documentation of death, etc.

I heard nothing back, and assumed all is ok. About 3 weeks later I was served a letter from Manulife lawyers that the LOC was being foreclosed and I was required to pay the full amount in six days plus lawyer fees. As you can imagine this caused me some stress, but the bottom line. As the sole benefactor of the estate (including the house) Manulife saw this as a new home owner and therefore foreclosed on the LOC. I was required to re-apply for the LOC under my name. Meaning Manulife needed to send out a surveyor to assess the property, and notaries to draw up the paper work. All on my dime. To assume this LOC was roughly 6000 on top of what was owing. And theoretically being a new client. I didn't get the low interest rate my mother was provided 10 years ago. Nope.. I got the 6% interest rate. Just a fricking mess, and I felt bullied by Manulife. As my notary for the estate put it. It seems aggressive on their part. Specially when I was the one trying to do the right thing maintaining the debt and I was the one who notified them.

It is has been exactly one year since I have assumed this LOC, and I am happy to report it has been totally paid off as of today. But will I remain with Manulife Bank? I think not. Even after spending the money for this LOC under my name on the property. I just don't think common sense on the other side was used. Could that be said of other banks? Perhaps. But this happened to me with Manulife Bank not with the others. So if I am ever presented with having to deal with Manulife again.. For any of their services. Or masturbate with sandpaper. I would say the latter is my option.

I just think the whole situation could have been handled better.

Norman1 said
It isn't going to be better with any other bank or lender if one defaults on a mortgage or line of credit secured by real estate.

Sounds like title to the property was transferred without prior approval from Manulife Bank. That is considered to be an act of default under many mortgages. For example, CIBC's standard Ontario mortgage charge contains this:

12. If you sell or transfer your property

Our written approval must be obtained before your property is transferred to anyone else, or before an agreement is made to transfer your property to anyone else. At our option we may require that the entire loan amount be paid immediately (including the outstanding principal amount, accrued interest, any prepayment charges and any other amounts owing), if any of the following occurs:

• if you transfer your property without first applying to us in writing for approval of the terms of the transfer and approval of the person that you wish to transfer your property to; or
• if you transfer your property without first obtaining our written approval of the terms of the transfer and our written approval of the person that you are transferring to; or
• if the person you transfer your property to does not enter into an assumption agreement with us that is satisfactory to us. In an assumption agreement that is satisfactory to us, the person that you transfer your property to will agree to assume this mortgage and any amendments to it and any related agreements, and to be bound by all the terms, conditions and obligations of the mortgage, amendments and related agreements.

If we accept any payment from any person who we have not first approved in writing, that will not mean that we have granted our prior written approval or that we have given up our right to require you to pay the entire loan amount immediately.
…

Also, mortgages are not automatically assumable. One can't just have the subsequent owner of the property take over the mortgage with no changes to the terms of the mortgage.  

Oh I agree with you, Norman1. The whole situation could have been handled better. Manulife, estate notary, my mother's financial advisor.

I am old enough to know "It is not personal only business.". But in this case it was personal, and I had been dealing with enough on my plate. If not my notary then Manulife could have advised me of things. There was no one on Manulife's side to tell me if you proceed with A, X will happen. And I am sure from the moment I called and spoke to a Manulife agent. To me emailing the documents. To the case worker that got assigned. It was all business. I get it. Not to sound like a boomer, but I am. My dealings with RBC for mortgages or investments. I can, if I elect so can have a sit down with someone in person. There is a lot to be said about that the human touch and explaining the story. Unlike with Manulife Bank which operates in a faceless manner.

Was I in the wrong? Should I have known better? Sure. Hindsight is always 2020. Running an estate basically taking over someone's life is extremely impersonal. What I could have used was a little more tact, and throw a dog a bone here. I was not trying to default, mislead or misrepresent. I was never asked and had the wolves sent after me. Could another financial institution done the same? Yes, of course. I don't bear all the blame here solely on Manulife Bank. But certainly they could have been more helpful. They were not, and hence my opinion above.

Again, ignorance is nine tenths of the law. If that is what you are getting at. I agree. Just my story and I wish someone at Manulife Bank would have looked at it from a human level.

It is what it is.