Sarah Mirando  |  January 10, 2011

Category: Legal News

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WachoviaPreliminary approval has been given to a class action lawsuit settlement between Wachovia and certain borrowers who obtained Pick-a-Payment mortgage loans between 2003 and 2008.

The Wachovia Pick-a-Payment class action lawsuit settlement will resolve claims that World Savings Bank and Wachovia Mortgage (a division of Wells Fargo Bank) violated various state and federal laws in connection with the Pick-a-Payment mortgage loan product. The lawsuit is styled In re Wachovia Corp. “Pick-A-Payment” Mortgage Marketing and Sales Practices Litigation, Case No. M:09-CV-2015-JF.

The Pick-a-Payment mortgage loan permitted borrowers to select and make a minimum payment amount for a limited time under certain conditions. When a payment was insufficient to pay the interest owed, unpaid interest was added to the loan balance and the outstanding loan balance increased (a practice called “negative amortization”). Plaintiffs in the Wachovia mortgage class action lawsuit claim that Wachovia did not adequately disclose the Pick-a-Payment loan’s potential for negative amortization.

Wachovia denies any wrongdoing but has agreed to establish a $50 million settlement fund to resolve the case.

If you obtained a Pick-a-Payment mortgage loan for a primary residence from World Savings Bank or Wachovia Mortgage at any time between August 1, 2003 and December 31, 2008, you may be eligible to claim money from the $50 million Wachovia class action settlement.

The amount of money you can receive will depend on how many people file valid claims and which Settlement Class you fall into:

Settlement Class A includes borrowers who no longer have a Pick-a-Payment mortgage because they sold the property securing the loan, refinanced the loan, personally paid off the loan, or have already obtained a loan modification that converted the loan to a regular mortgage.

Settlement Class B includes borrowers who still have a Pick-a-Payment loan and their mortgage payments are not 60 or more days past due (as of December 16, 2010).

Settlement Class C includes borrows who still have a Pick-a-Payment loan and who are 60 days or more past due (as of December 16, 2010).

If you are a member of Settlement Class B or C, you do not need to do anything to receive a payment from the Wachovia Pick-a-Payment settlement. You will automatically be mailed a payment if the settlement receives final approval.

If you are a member of Settlement Class A, however, you must submit a claim form postmarked no later than March 16, 2011 to receive a payment from the class action settlement. Claim forms will be available on the Settlement Administrator’s website on January 28, 2011.

For more information on how you can receive money from the Wachovia Pick-a-Payment Class Action Lawsuit Settlement, visit the Settlement Administrator’s website at www.pickapaysettlement.com.

302 thoughts onWachovia “Pick-a-Payment” Mortgage Loan Class Action Settlement

  1. Bruce Pendleton says:

    I also was not advised. Predatory loan practices on my mortgage by Wachovia and Wells Fargo 2008- 2016.

  2. Retired SSG. Thomas Taylor says:

    Wachovia had our mortgage from 2008 until 2018 and they sold it Specialize loan. We had never. Missed a payment. They kept my last payment and didn’t forward it. Now my mortgage payment is still a month behind. After paying on my mortgage for ten years to them. I still owe as much as I did .when I purchased my house

  3. Pamela Gaskins says:

    Just discovered that my fixed rate loan of 6.75% from 2006 from Wachovia for $200,000.00, now 15 years in, still owe 150,000. I was told I had a Simple interest loan, that compounded daily. I discovered I have irregular disbursements of funds to the principal, at time $0 went to the Principal, different amounts. By the time I pay this loan off in 15 more years, it would have cost me $473,000 for a house I borrowed $200,000.00. I was not offered any type of settlement. I am now pursuing this atrocity.

    1. Rosalie cedro says:

      How are you pursuing the matter. I need to do the same as I purchased home for 235,00 in 2001. Now Principal showing 308,000

    2. Tammy Brown says:

      Could you email me at tammysmail6@gmail.com? Same thing happened to me. I was only offered a 30 yr. loan at interest only for the first 10 years, then 5.62% interest going forward. Was originally 30 yr fixed.

      1. Tom says:

        Is there still money left? I still have an arm loan that’s reaching 6%.

  4. Claire Dileonardo says:

    The same has been going on with my mother and now she passed away and this case is still going on for over 12 yrs. I don’t understand why they are allowed to get away with this.

  5. Robert says:

    If you signed for this loan (borrower) then you’re an idiot. If you extended this loan to someone (lender) and thought it was the right thing to do then you’re also an idiot. When one idiot meets another idiot you have these type of loans.

    1. Samantha says:

      Robert – Your comment is completely out of line. Go post your ignorant and arrogant comments elsewhere.

    2. Samantha says:

      Once again…
      Robert – your comment is completely out of line.
      I’ll bet such ignorance and arrogance hasn’t served you well.
      Go elsewhere and help yourself.

  6. Nancy L. Fenton says:

    WELLS FARGO IS STILL CLAIMING THIS KIND OF LOAN IN wORLD sAVINGS AND WACHVOVIA’S NAME IN THEIR CONTINUED FRAUDULENT SCHEMES. THE FEDERAL GOVERNMENT HAS SLAPPED FOR THE USE OF THESE LOANS. REMEMBER WELLS FARGO IS PRACTICING FRAUD. WHAT THEY ARE DOING IS NOT LEGAL.

    1. Sheila says:

      I am dealing with this right now. Never received anything about this class action suit. I am so angry

  7. Charles Granofsky says:

    I never had a problem with the loan. I have almost paid off my mortgage. I still own my home. When the interest rates went down, we kept up the same payments we already had. That went a very long way. Why lower it down and extend the time off debt? Complaining about mistakes made by blaming the bank doesn’t help.

    1. Jesse says:

      You must work for Wells Fargo to talk about this fraudgalent act you shithead!

    2. Nancy L. Fenton says:

      The problem is that a Class Action Suit was won by the consumers and the FEDS declared the Loan Illegal. The Feds made World Savings, Wachovia and Wells Fargo pay the holders of these pick-a-pay loans a sum of money and held that these Pick-A-Pay Loans are illegal. Wells Fargo is not only claiming a World Savings alleged Loan five months after World Savings was shut down for fraud, on September 22, 2006 funding and September 25, a lone signing by the borrower claiming unsigned note and application as a legitimate loan. Wells Fargo needs to be charged. with crimes. But the Irony of it all Wells Fargo here in 2020 not only are claiming a Pick-A-Pay unsigned, illegible, falsified documents, does not meet the standards of practice for a Loan. Wells FArgo is in violation of the 2008 Class Action Mandate from the Lawsuit and should be made to pay the fines, but that is not good enough for such crimes, Wells Fargo should be put in jail where all criminals go. Wells Fargo continues to use three law firms, who cheat, lie, steal
      and falsify documents, pay off the other attorney’s and clerks, they make it know that they are willing to pay for services. To their detriment, documents refute their claims. Most people do not understand all of this spinning of the loan claims, but I do, I am a Broker, I will be heard People read this article and educate yourselves on mortgages, lenders, Deeds of Full Re-conveyance, Don’t assume because you hold Title, especially if you paid off your loan and have quite a bit of equity, those ar the ones Wells Fargo goes after, Making falsified claims on homes with a good deal of equity for Profit., they prey upon senior citizens and single wormen. STOP WELLS FARGO NOW. BOYCOTT THEIR BANK, THEIR SERVICES, THEY ARE OUTLAWS!!!

      1. Angel Francisco Uribe says:

        Thanks for your information.. wells Fargo destroy my entire life.. i got nothing now.. and yes they should pay for all of us whos have suffer because of their mistake..

    3. Sheila Plummer says:

      I just found out I have that type of loan, that I had for years so upset. Don’t know what to do. Wells Fargo wants me to get another loan with them. I try to get my mortgage company to give me a loan , but because the bank would not take my payment it shows I did not make a payment for the month of April. This so wrong on so many levels.

    4. Brad Swartzbaugh says:

      Well Charles, either you are the luckiest person I know of. OR you are among the countless number of individuals who did not see the malicious and fraudulent lender abuses until it was too late.
      They are truly an organized crime syndicate without fear of personal legal consequences for their actions. They use multiple well honed schemes in order to fraudulently deprive their homeowners of as much of their money and equity as possible. Towards the latter part of the loan they follow up with intentional incorrect credit reporting, maliciously destroying borrowers ability to refinance or obtain consumer loans. At that late stage the mortgage no longer brings in “Big Bucks” Deemed unprofitable as a loan at that point, the lender will use any method, legal or illegal, to foreclose upon your property. An “Icing On The Cake” if you will.
      These scams not only involve Wells Fargo & Wachovia but can involve other entities as well.
      These collusions can include Appraisers, Insurance Agents, Real Estate Agents, Property Inspectors, Loan Servicers, Note Holders, Attorneys, Local Banks, Property Developers, House Flippers, etc..
      Yes- I have been burnt bad by Wells Fargo for over 20 years now.
      -Lender solicitation through hand written personal mortgage loan offers
      -Predatory subprime lending when my fico score qualified for prime rate.
      -Bait & Switch of important loan terms & interest rates
      -Incomplete fake mortgage loan contracts- We were not present to sign in front of Notary
      -$6000 charged for loan fees on a $29000 loan
      -Multiple incomplete mortgage contracts with incorrectly spelled names, and incorrect addresses
      -Many nearly blank Mortgage Documents were sent to us.
      -Wells opened multiple unauthorized accounts in our name all the way back to 1998. Shuffled money between them from our mortgage payments resulting in late “unapplied” payments
      -Unauthorized and unknown life and health insurance loan accounts opened -still in discovery on these fraudulent accounts but possible amount estimate of 7 to 10 thousand charged to us.
      -Wells added these fraudulent account balances to our mortgage loan with no disclosure of such
      -13 loan servicers to date. Only notified of servicer change once. Unknown amount of note holders.
      -Malicious Intentional negative credit reporting- False statements
      -I have one mortgage loan with $39000 balance, and one Second mortgage with $3000 balance
      -Wells just reported to credit agencies that I now have 2 home mortgages.? I checked all three credit agencies just four days ago. ALL correctly showed 1 home mortgage $39000 balance. Today all three credit agencies show I now have 2 home mortgage loans totaling $80000 balance. AND one correctly shows my original 192 month loan term, and the other shows a 240 month term
      -Wells Did Not Report MY Mortgage Payments to Credit Agencies for nearly 6 years.
      -Homeowner Insurance was paid through my escrow. I year policy paid in full. Valid from 12-01-2019 to 12-01-2020. Wells sold servicer rights to SPS -We were not notified by SPS until 04-27-2020 of this transfer, with transfer date and first payment required on 05-01-2020. Short 3 day notice but made the payment on time.
      -We receive a letter from Wells Fargo on 5-21-2020 stating they had CANCELLED MY homeowner insurance effective as of 05-01-2020. Letter was dated at the top of page – 05-06-2020. We did not receive letter until 05-21-2020. ???? LONG STORY SHORT- DUE to WELLS FARGO Cancelling my insurance policy on may 1st, I had a “LAPSE” in homeowner insurance.
      I immediately found and paid for a new home insurance policy. A full year policy. Due to lapse my yearly insurance cost went from an original $780 to $1350 WOW!!! THANKS WELLS FARGO!!
      -No that’s not all…escrow account fraud, fixed loan rate changed to an ARM at 10 years. I have page after page of their abuses. AND I still have all my original documentation, mortgage contracts, every statement, every letter, every personal bank account statements, canceled checks AND check registers back to 1993. Evidence of illegal collection procedures, all appraisals, all tax and mortgage interest statements. Many printed credit reports dating back to 2001 to 2020. Thank gosh I am a paperwork and document horder.

      Yes, I have contacted multiple WELLS FARGO ACCOUNT SPECIALISTS concerning unauthorized fraudulent accounts, credit reporting issues all to no avail. Seven investigators have reviewed my issues in the last 2 years. Five of these account investigation specialists took my grievance report and did not respond back to me. More recently acct specialist “Andre” recorded a 30 minute phone conversation of my grievances. 2 months later he called me back and would only say “We Are Good To Go” WHAT???? I SAY, WHAT ABOUT THE ISSUES WE DISCUSSED?? Again Andre would only say We Are Good To Go” WTF?? Two months ago I once again called Wells Fargo at the executive office on Walnut St. in Des Moines, IA. Another 20-30 minutes of recorded conversation. Multiple issues were discussed. Last week I receive a letter packet from the specialist. Absolutely no answers, no issues were resolved, damaging credit reporting was told it was my fault. Most issues not answered. Man I Have Tried & Tried My Hardest Over The Last 10 Years To Have Wells Fargo Correct The Issues, Fraud & Atrocities.
      -So many atrocities by Wells Fargo…. All without these perpetrators being brought to face personal criminal charges.
      Facebook – WELLS FARGO SUCKS

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