Once again, the future of Kingston Estates Swim Club is hanging by a thread, as TD Bank refused the club’s offer of $94,000 toward its debt in order to stave off foreclosure proceedings.
In an email sent to the Sun on May 7, KESC Board President Bob Mangels stated: “On Friday, May 1, the BOD was notified that TD Bank has not accepted our pledge offer to fulfill the loan. The rationale provided by the bank was as follows: ‘Given the value of the loan’s collateral, a settlement for less than the amount owed doesn’t make economic sense.’
“This communication was received after TD Bank had a full property appraisal and an environmental appraisal made. KESC has not been provided with copies of these appraisals.
“I’m not sure where we go from here,” Mangels added in the email. “It’s been recommended we hire a foreclosure attorney, and I agree, except KESC does not have the funds to hire one. If anyone knows or could recommend a foreclosure lawyer, I would donate my failed pledge donation to help pay legal costs.”
The message additionally stated that the club now has two options: foreclosure, in which ownership of the club would transfer to TD Bank, with both sides possibly incurring heavy costs as the process drags on, or a deed in lieu of foreclosure where both sides enter voluntarily into an agreement to avoid drawn-out foreclosure proceedings.
Mangels told the Sun in a phone conversation on May 14 that Kingston’s board was expected to have a teleconference with a Florida-based branch of TD Bank the following day to discuss the club’s next move.
In response to the bank initiating foreclosure proceedings in late January, Kingston underwent a massive fundraising drive, going as far as to canvass the greater community for assistance.
Acting on research from its club treasurer, who found out certain loans could be forgiven for 25 cents on the dollar, the club attempted to cobble together $100,000 so TD Bank might halt the foreclosure. The total stood at $94,000 by the time the club submitted its proposal in mid-February.
At the time, Mangels told the Sun that over a two-week period, current and former club members, as well as other Cherry Hill residents and businesses, pledged to keep the club viable. Additionally, Cherry Valley, Willowdale and Haddontowne swim clubs all chipped in to help.
TD Bank representative Martha Gaston issued a response to the Sun’s inquiries about reasons for rejecting Kingston’s offer, in an email: “To protect the privacy of our customers, TD Bank only discusses the details of a loan with individuals specifically authorized by the borrower. TD Bank values its customers and communities, and strives to avoid foreclosure litigation until all other alternatives have been fully exhausted.
“We welcome the opportunity to discuss any new developments on paying or fulfilling the loan directly with the Kingston Estates Swim Club’s president,” she added.
Mangels said he doesn’t know if Kingston will open for summer, and won’t have a clearer idea until after the teleconference with the bank.
“There are so many logistical challenges at this point before we’re able to operate in full: from the cleaning and sanitizing of the pools to figuring out how to properly enforce social-distancing rules,” he stated.
“People come here not just for the swimming, but to socialize, and we need to find a way to keep everyone safe.”
