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Preliminary 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
class action
The attorney is right. But left out one thing. If you opt out by March 16th, you will then have the right to sue with your own attorney, otherwise, you loose that right if you stay in the class action. The other thing is that I was encouraged by one of the class action attorneys to try (for a second time) to apply for the loan modification. He said that Wachovia has loosened their requirements. We’ll see. It’s my only hope!
Wachovia
to the attorney who made the point of the lawyers getting over half of the settlement, if the 517,000 appeal arguing the point that each person would only collect $90, would that make a difference? could we call the lawyers who are supposed to be representing us in the case against the bank?
Wachovia
So should we opt out of the settlement by March 16th?? I smell a rat here that few people seem to be discussing… What if thjis is a way to get us $95 each, and then as part of cashing this check (which will buy you lunch for 6 at quiznos) we have not given up any right to sue the banks ourselves to get out of our mortgage obigations (whichy seem to be happening with more regularity).
Thoughts anyone?
Wachovia
I am struggling to pay my mortgage. If without the little help from my two children, I would not be able to meet my obligation. I was laid off last year and I am on unemployment. I use my unemployment money to fill up but my unemployment is about to end. I have 3 options to pay my mortgage first, minimum payment, 2nd Schedule principal and interest and third 15-year payment plan. I currently chose the minimum payment. I called them to try to refinance to fixed mortgage but they told me I cannot because my mortgage is “upside down” meaning the current value of my home is lower than the principal I owe. I asked for loan modification and they said they have to interview me for at least 40 minutes. I have not done yet because I’m not done with my tax to determine our annual income.
Wachovia
8-) Say you took the loan, tried it for a half a year, did not like it onece you have studied it. Then decided to dump it and refi your loan with anonther bank. You paid a penalty for dumping the loan too early, you paid for a refi, your loan principal went up. Could 100 to 500 cover all of your costs. Really? These people should not get the money but a loan restructuring with a principal modified to a just amount. Will this ever happen???????
Wachovia Settlement
Let me explain how it really works. They plan to settle for 50 million and the lawyers are wanting 25 million. The lawyers will then sue the plaintiff for the 25 million. (They will not get it from the settlement nor from the people who are receiving the settlement. ) There are 26 people who will receive 125,000 each. this money is taken out of the settlement. Leaving 46,750,000. So lets get down to business. there are 517,000 people who take part of this Class action lawsuit. So when you divide the money by 517,000 than the total for each person (assuming they all decide to file the claim) each person will get 90.425 (90.43 if you round up). So that is the break down of the settlement. This is what you are looking at if you are part of this settlement.
To be honest 50 million is nothing. They should sue them for more because that is chunk change for them. The ones who really win in all of this are the lawyers (who get paid) and the bank (who gets a slap on the wrist)
I have a client who is class C and at this time still in their home and very much deserving of that $125,000 reward. Is the jury still out on receiving of funds?
Wachovia
Does anyone know how many Pick-a-Payment Mortgage Loan customers did Wachovia have between August 1, 2003 and December 31, 2008?
Wachovia
I was just informed that I do not qualify for a modification. Apparently, if you are struggling but making the awful payments you do not qualify for help. I owe 200K more than my house is now worth. Guess It is minimum payment until it implodes on itself.
Wachovia
I obtained a pick-a-pay loan from wachovia bank in the time of which is stated in the settlement statement. My payments are current for the time being. I tried for a loan modification, but was told that this is not a option for me. I am sure we have a long wait to see what unfolds from this matter.
Wachovia
I have this kind of loan from this bank and wonder if it is real and if the lawsuit goes through what will happen next. I am already underwater and can not re-fi becasue of how much, according to wells fargo. I guess well see, probably in 2012 or later. :-(