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 did just that, wrote to jeff berns about all this, and will see if he gets back to me. will keep u all informed if I hear back from him. I would suggest everyone do the same.
In case anyone is interested in speaking to the main lawyer for the defendants:
jberns@law111.com
This is the main lawyer for the defendants in the Wachovia pick-a-payment lawsuit.
Jeff Berns FYI
you can find his phone and address on the state bar website under the search for lawyer section
I have just now, emailed him asking what else can be done, if anything.
oopps! meant to say $178 check NOT $4178 (Would have been nice)
BTW $178 does not make up for all the neg-am from the past nor the future.
dont know what any of us can do.
I think the ruling should be overturned (if possible)
I will email the defendants attorney to find out if that can be done and how? (Cost)?)
we, too, received this 4178 check on friday, 10-13-11. what a joke was my first response, I cannot type here my 2nd response due to the harsh words used. The banks keep screwing us. no wonder the world is participating in “OCCUPY”” I hate to say it, but I think that anyone who didnt “OPT-OUT” u r stuck with the $178. We have tried for the last 1 1/2 yrs to get a loan mod (using a 3rd party law firm) & wachovia denied us everytime. we do qualify, but each time they come back with a different reason. I agree with steve P (above) the judge should have made a mandatory decision and eveyone should have gotten a loan mod) wachovia sucks.
OK, I sent the I don’t want to be part of the settlement back whenever I received it and forgot about it. Then on Friday, I get this huge check (LOL) for $178. I went to the pickapaymentsettlement.com site and I don’t even qualify for the settlement. It states you have to be 60 days behind and we are current.
Where does that put us? If something comes up, I want to be able to initiate my own law suit.
will be distributed on a pro rata basis to Settlement Class A members who have
submitted timely, valid claim forms and to Settlement Class B and C members who have not
excluded themselves from the settlement. Because the settlement fund will be divided on a pro
rata basis, no unclaimed portion of the fund will remain after distribution. In the event that a
class member fails to cash his or her check within ninety days after issuance despite a required
reminder notice from the settlement administrator, the funds from uncashed checks will be used
to offset administration and notice expenses; any remaining funds will be distributed by means of
a cy pres fund to non-profit organizations.
OK, every one of us aren’t sure what to do, and we here noticed that the words, “Please Cash this check immediately” is in bold letters. We all know by now that Watchovia is not Watchin Ova Us, and is trying to ‘guide’ us again. I suggest we all consult a few lawyers (online and any way U can) for a consultation. There’s no charge to see if there’s a way to persue this. An unethical agent? No/poor ethics? No disclosure as to how much these checks were going to be, etc. We come back here to see if anyone’s successful. I’ll tell my results! signedL tresurs at live dot com
This is a piece of garbage for a settlement. The judge should of made Wachovia, re-do every loan with today current interest rate. A 30 years loan at today current valve of their home and help these individuals out. HELL NO… The system will not do that. The lawyers made a bundle from this deal and the individuals that were taken will get a piece of churn changes. How fair is the system. Why didn’t government let the big BANKS fail…
http://www.wnyc.org/articles/wnyc-news/2010/oct/06/wells-fargo-pays-24-million-over-pick-payment-loans/
Who hasn’t cried buckets? Is this that “Let The Buyer Beware” thing? Then how long until we need to guide our surgeons through a successful operation? We, such as our parents and grandparents, didn’t need to worry about catching an agent or lender in a swindling contract. They paid a down, make their mortgage and taxes, and then, after a certain number of yrs, had a mortgage burning party! But this mess is OUR fault, according to the jerks who watch from afar. Now this burn. wow. Where is the good ol’ US of A??