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
You did copy the check, right? I guess a loan mod might help, just read and reread the documents. ‘…fool me twice…” I’d be scared to pieces!
WE ARE SENDING THE CHECK BACK AND TELLING THEM … “”IN GOD WE TRUST”. WE DON’T NEED THERE UP, they didn’t help us anyway. GOD WILL PROVIDE FOR US. THOSE OF YOU WHO CAN GET THEM TO MODIFY YOUR LOAN DO IT. THAT IS PART OF THE SETTLEMENT.
If you do like Karen and cash the check, it’s over for you. Take a seat and refocus your current life. The reason you read:” Cash This Check Immediately” in bold letters is there is still time to appeal, etc. Don’t contact the lawyer they hired to represent us. Either they work for ‘them’ or they’re bad at their job. It’ easier than ever to find attorneys that work in this field and they’re drooling! I am doing this. I have the check and have no intentions to cash it no matter how hungry I get. 178.00??!! I’d rather be a pebble in their shoe at the very least. And no, pooling our checks together. etc. won’t work. Too many details. And they hope you don’t make your payment(s). That’s how ‘they’ are taking control of America’s financial strength. It’ll be the rich and the poor just as Donald Trump predicted. The latest? Reverse Morgages. It’s how the bank takes paid-for houses from the elderly. They’re a patient bunch. This is far from over… Don’t cash that check! You have a case!
omg cash your checks…it over! you had an opportunity to opt out and take them to court (and good luck with that one cuz no lawyer will touch that unless he is paid and paid well) face it…we got screwed…they all got together and played golf and decided long before this was ever taken to court. Now modifications..different story..put some pressure on your representatives and educate yourself on the procedures..the States are losing property taxes and most want to work with homeowners.
Hi, I also received a check for $178.04, but in my case, I sold my house 3 months ago so I no longer have mortgage under my name. I am just a little skeptical to cash this check for fear of hidden obligations, or maybe there is more I can do to settle this? Any help is appreciated because I have no idea how all these things work, thanks!
I like your idea Allen, except I deposited my check already cause I needed the money unfortunately. I feel they should work with all of us to get a loan modification. That is what the lawyers should have done to help us all out when the civil lawsuit was on. For them to settle for just this $178.04 was not in any of our best interest. I really don’t know what I am going to do in another year, cause that’s when all the deferred interest will roll onto my payment. So now what?
I have my check also for $178.04. I have 2 ideas.
#1, we all put our $178.04 together and hire an attorney to fight for modification of all of our loans.
#2, we all get together and notify the bank that if they don’t modify all loans, none of us will make our December payment. Imagine that. If 500,000 people, all didn’t pay their mortgage, I think they would be forced to work with us all. If they don’t give in, then we all don’t pay the next month, or the next, until they cry Uncle. I think it would work.
Meanwhile, you save your mortage payment every month, incase they forclose on us all, so that we can rent a home or apartment.
What do you think?
sales@futons.net
Our check is also 178.04, I feel like we have been used. We accepted on good faith that the agreement would be fair and adequate. I believe the attorney’s did not act in good faith for our best interests – but rather an agreement that was very lucrative for their firms. I know this is how we all feel. Our loan was with World Savings, pic a payment, we put 20 percent down and had good credit. We were told that if we made bi-weekly automatic payments from our checking – our loan would never accrue any negative interest. Wow was that ever a lie. Does anyone have any advice on what we as a group can do at this point since we have been taken for yet another scam. Or is this the end of the road and we lost? Our loan was classified class A.
I am in class A and recived my paper work reguarding the settlement. I then sent in my claim form because in the forms it states if I do nothing I give up my rights and the deadline was really close so I sent in my claim ,but after doing my reasurch and calling the hot line number I asked how many people are eligible for this class action they told me like 500000 so I did the math and guess what 90 dollar payout. To make a long story short I just recived my 174 dollar check and want to know what to do . Or am I screwed for turning in my claim . What a joke just another Scam I think we should all start up a classaction I am interested to hear your thoughts contact me at brant5009@yahoo.com
I received the 178.04 check. i am a little nervous about cashing the check. It took me 2 years to get a loan modification. I am affraid that if I cash this check, it will mess up my new loan. Has anyone cashed the check, and if so did anything happen??