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 am throwing the towel. I received the check fro $178.04. There is nothing we could do. I am getting foreclosed on December 14, 2011 by Wachovia/Wells Fargo and will file for bankruptcy early this coming year. I am losing my home of 11 years. I am losing my credit. I lost faith in the system. The big guys won again.
I am posting this to help in any way I can. I just received a loan mod from Wells, the third time! This was recent with re: to the lawsuit. The 1st time we were denied as we didn’t make enough, 2nd time denied because after I became employed, we made too much. 3rd time our status has changed radically and this is what they gave to us..They converted the loan to a fully amortizing loan, beginning with a low interest, increasing by 1 point for the two years and capping in 5. They waived 2 months back mortgage we missed along with 2K in fines/late charges, they added our large back property tax bill to the balance of the loan and they required us to impound our taxes going forward as a condition of the loan mod. This was a JUMBO loan, we just signed. If anyone would like further info, pls email with your questions. I am still shocked….
I found a firm that only deals with situations that involves several people (like we are): ‘The Public Interest Law Firm’ (TPI) Their purpose is to help masses of people, not just one entity. Are they students? I don’t know. I am trying to contact them but I think if we all bonbard them, they might take notice. According to them, all banks are watching this Watchovia suit/settlement to see if the courts back the banks on this. If so, as it appears, all banks are going to follow Watchovia’s lead. So, the banks get bailed out AND settle so no one can touch them! wow… Stay in touch, please.
I just got off the phone with the administrator. My check was mailed to me but has not been cashed yet she said… I have to write a letter and request they cancel the first check and send me a new one… YEAH RIGHT, I have been unemployed for almost 7 months now and hate to say it but I need that little check to keep things afloat. If the check had been sent to me I’d have cashed it. I have never missed a payment to these guys but when it comes to getting a check from them, I once again have to be the one to jump through all the hoops. My request for a modification was turned down after several months of BS sending them everything more than once only to be told I WAS NOT ELIGIBLE because I was not in imminent danger of default… (WELLS FARGO sucks)
It’s not legal for them to make you opt out of a lawsuit that you never asked to be in.I received the check for $178.04 and I’m not cashing it. That’s chump change compared to the interest we all have paid.I’m sure in the future that I will be able to use this as leverage when I decide to re-fi or loan mod.it will probally take years but I won’t give up my rights to future compensation for $178.
Got my check for $178.04 …… PISSED…….. How is that supposed to help me, or even lighten any kind of load in my life right now … I had to short sell my house and still had to do bankruptcy at the very end…. All because of a scam loan…. Now my Credits gone and someone is out there chillin on a boat smoking a cuban cigar with all our freakin credit/money ……. While I am trying to build back up my credit for me my wife and three girls ….. 178.00 .. BS opdopy@hotmail.com I’m ready to fight
I forgot to give my email address. Scarlettrose02@aol.com. If you are going to file lawsuit against Wachovia please contact me. Wachovia needs to be held accountable!
I am in the same boat as all of you. If you are getting together to file a lawsuit against Wachovia please contact me at the email above. Thanks
If anyone who was a class member in this law suit, and is not of African American heritage, could you please contact me? It’s very important and your help would greatly be appreciated. Let’s stick together to stop these predators from doing more destruction then they have already done. you can feel free to e-mail me at jdt700@gmail.com Please. Anyone. Thank you
The loan mod scam has been perpetrated by every bank. Wells Fargo made me jump thru hoops for months only to deny my mod in the end ,stating that Freddie Mac said I DID NOT MAKE ENOUGH MONEY TO MODIFY! My loan was current and had never been a day late. I gave up early…sounds like I am the lucky one as they did not force me into foreclosure…just BK. Heads up to everyone. The reason they are offering those pay-outs to leave is because people are successfully stalling their foreclosures for years…do the math. No payment on your home for up to 3 years?? My ex has done exactly that. He found out early on that his bank had no real intention of modifying him, that they were playing games & he successfully turned the tables on them. Ten years ago I would never have been in support of someone doing such a thing, but as my ex’s 3rd year anniversary w/out a mortgage payment is upcoming and he is STILL in his home….I am his biggest supporter. He is beating them @ their game….hoooooorah!!