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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
My story is just like everyone eles, no refn, no mod, just pay the min until it blows, I guess…..
Hello my name is Rosa just got a check of 194.04 , but I never heard nothing about this situation of Wachovia and thought the check was fake. but now that iam reading all this comments I realize the check is good . I will double check this with my branch then deposit it cause I too did a modification with wells fargo and got drop about 55thousand out my principal and got good interest rate of 2.99. so maybe this is another blessing from God to me. thanks
this is bull shit 178.04
I just received my settlement check for $178.04, but I am afraid to cash it. Does anyone know for sure what rights I am giving away if I do cash it? It only gives me 90 days before the check becomes null and void.
I too received a check for $178.04. At first I thought it was fake. I really need the cash to fix my car! But not sure what to do! What will happen if I cash the check?
Thanks!
I thought u were joking Randy about what u said. So how did u get them to do all that?? We all would like to know. Thanks
Basically we got screwed again and the Lawyers win. At least we got to new refi years ago and are getting our principle down. What a freeken joke. Can’t believe a Judge oked this knowing that we would only get a check for $178.04. :( if you need anymore infor. go to website.
https://pickapaysettlement.com/
those who took apart people lives and family ,suffer the way we have.
What I would like to know is if it is lawful to cash the settlement check if you fall into Settlement Class C only because the foreclosure on the property has not yet been completed. Have not lived on the property since 2008 and the court system is simply so backed up with foreclosures that it is still in my name.
I just got a check for $178.04 yesterday and do not even remember if I signed any law suit paper but Iwill be happy to learn from Randy how he got the 65k off his principal and interest of 2.65%. I had a heart surgery in 2010 and started to be behind and just went back to work but earning way below 50% than when i used to have 2 jobs. Please help Randy on how you did it……thanks
I do not know if to cash the check settlement or not …anyone help…please