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
I too got swindled on this loan and am now tying to dig myself out of a whole. I do not know where to turn or who to trust for a loan. so sad i could cry over my american dream!
Check $178.04 …
If you cash this check, you cannot file a lawsuit against Wachovia about the same class action. You can file a different lawsuit, but not the same.
Basically, they get a slap for “Deception” and your $178.00 check is NOT admission of guilt on their part, simply a settlement for adding thousands of dollars “negative amortization” to your subprime mortgage. Unless you have plans on suing, paying exorbitant lawyer fees, I can only suggest you take the money. They will send you a “reminder” notice for those who are waiting out the 90 days.
I JUST RECEIVED A FUNY CHECK FOR $178.04
iS THIS MEDIOCRE PAYMENT ALL WHAT I GET FROM A CLASS ACTION SUIT
IS THERE A PROVISION FOR MORTGAGE MODIFICATION?
PLEASE REPLY
To get your interest and principle lowered you must apply for a home loan modification. Due to the States losing money on property taxes they became involved. So the best place to apply for a modification is through YOUR state’s DA’s office. But i would read up on mod qualifications before applying. I got 40K off principle and 3.65 interest plus every year Im a good girl and pay on time i will get an additional 1K off principle for five years. Which i find halarious bc I would have never been late if they had not swindled me.
https://pickapaysettlement.com/
January 28, 2011 – Friday, January 28, 2011
For questions about this Settlement, please call Rust at 1-866-886-7224. Do not contact the Defendants with questions about this Settlement, including questions about the notice you received or questions regarding how much your settlement payment will be. If you have specific questions about your loan or wish to discuss or apply for a loan modification, contact the Defendants at 1-877-546-8449. Again, please do not contact the Defendants with questions about this Settlement, as those callers will be referred back to this website.
@ Randy and Rosa – can you please provide us with phone numbers, websites or email addresss of who we should contact to get our prinicpal balance lowered. Any help you can share with us will be appreciated by many! Just point us in the right direction! There are so many of us lost and confused!
Thanks!
My husband and I just got a check for $178.04 yesterday and we had NO IDEA about this lawsuit. We will be happy to learn from Randy and Rosa how they got the $ off their principal and lower interest…….At this point we are not sure if we should cash the check settlement or not …. Any advice?
This is the saddest thing I’ve ever seen in my life. Again I ask, what is the point of the “fairness hearing” if the attorneys are allowed to profit off of our misery? WTF is this country coming to? This check is a joke, but not funny at all. I am mad.
try for a modification through your state da site..even if you have tried before. it wont make you whole but at least it will keep you from being upside down on your mortgage. look up a lot of sites and read read read…educated yourself before applying.
What should I do, I got my check 178.04
should I go to Well Fargo/Wachovia and ask for a modification?
I need answers. Soon my son is going to grad this year and I don’t even know how I would be able to pay that.