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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
Hey “Randy M” please share some input as to how you got them to reduce your principal balance. PLEASE PLEASE SHARE, IT would be so helpful to know. I too got my $178.04 check in the mail today.
@Randy, how did you get them to knock $65K off your principle and 2.65% fixed interest after the modification? Everyone is underwater, please help share, I desperately need some advice.
I am not sure what to do.. ..how can we find out? I also received a ck for $178.04.
I received a check for $178.04 today and had to google the Pick-A-Payment Settlement to find out why I got the check. I found the above comments both interesting and troubling.
Sounds like some people didn’t understand what they were signing when they agreed to their mortgage. I will deposit the check and forget about it.
Yes, I too received a check for $178.04 So if we cash it, I suppose it means we accept what we got, and cannot be a part of any other lawsuit against the bank? So they say we have 90 days to cash it. Anyone have idea on what to do at this point?
just got my check…….yea buddy!!!!! $178 bucks! well that and the 65k they knocked off my principle and the 2.65% fixed interest rate after their modification. World Savings was the best loan i ever got into!
I also just received a check today for 178.04, should I cash it,,i don’t understand any of this
just received a check for $178,if i cash this will it hurt my chances in the future?
Just got my check today for $178.04. Feel it should be more than that but will take what I can get.
I also heard that number 517,000. However, what I heard is somewhat different. As we know there is three differnt classifications that consist of that 517,000 number. “A”, “B”, & “C”
The B & C group automatically qualifiy for their part of the settlement. (they were not required to email proof that they had a mortgage that fell into the category.
The A group had to submit info via email or mail. So now the question is how many A, B,C fall into each group.
This is just an example. If the B & C group number of mortgagee’s totaled 100,000 and the balance (417,000) belonged in the A group, then if only 200,000 from the A group submitted their paper work for the class action suit… only 300,000 instead of 517,000 would receive payment.
The split would be less. That is why I feel we will get more that the quoted “$96.”