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
Just got a postcard saying that I never cashed the settlement check sent to me in October. Never got it! Must be a scam. Now 6 months late on my mortgage…..trying to do the modification and they keep telling me I never sent in my documents they requested. Bull! They now have a specialist who I have to speak to and never calls back or his voicemail box is full….mind you, am only one month behind and they will not take 5 out of 6 payments…..love it!
I am applying to the Florida Attorney General for being refused several times for Loan Modification because of contradicting reasons of denial by Wachovia.
Email: Kushnirkii@aol.com
IK
We never got our check. But today we did get a letter stating that we did not spend the check. Wth is this crap.
WE are sending the check back saying,”BLess you, But “NO” Thank you!!! Blessed are those who Trust in God, NOT evil man!!!”” Amen
God is GOoD. The wealth of the Evil is stored up for the Righteous. Wait and trust on GOD not Man!!!
We also were mislead by World Savings/Wachovia/WellFargo. In 2007 we refied into this nightmare for $260k when I saw the principal increasing and interest going up. After being denied a loan mod. tried to sell for 2+years finally had to do a short sale 2010. Realestate told us April 2010 don’t make anymore payments we owned this for 19 years with no lates.. Short sale closed Aug. 2010 by then my principal increased to $271 K. Now can’t buy/qualify for a FHA for 3 years from short sale. Our credit reports show high balance of loan $325 K (wrong) and 120 to 150 days late. Account status ranges from PAID to SETTLED FOR LESS to Unknown.
So you can say they have ruined our life also.
It anyone starts a lawsuit please let us know.
kchocmilk@gmail.com
You’re right. We went to buy a used car from who we thought was a private party when we discovered it was a dealer. We went through the steps and when we got to the money/contract part I could feel my blood pressure rising. I firmly put the pen down and looked at the longest contract I ever saw (next to real estate papers) and told the guy how we were victims of the preditory lending and all it entailed. I told him I can’t sign the papers because I’m convinced there is SOMETHING in there to distroy us financially!! I am never signing a contract again. Maybe that’s the way to get these slimy, oozing people back. They’ve taken our trust, etc. and we should all go on a cash only basis. That would crush them…
It’s depressing to see what this world has become. Thieves, liars, and all in the name of greed. How these people can get away with doing this to thousands of people is horrible! And what is really depressing is that they got away with it through the system. Just goes to show who they are for. It certainly is not for the people, who struggle all their lives to keep a roof over their heads. This world is going to hell, or maybe were already living it. I don’t believe in the system, and neither should anybody. It’s all a crock of crap! Let’s hope justice comes to us all from a higher power, cause that’s our only hope.
Can we make a big petition??Like the one they did for BOA when they mention charging $5.00 Fee. Lets make this Big like Occupy Wall street!!
I received a check for $178.04. I have not cashed it. My pick-a-payment ended in Mar, 2011. They put me on a loan that the interest rate is going up and down. I am not trying to get a loan modification. What are my rights regarding the interest that is now added to my loan from the pick a payment?
If you are getting foreclosed and you file bankruptsy before they foreclose.that will buy time . i know people that have the intend foreclose and they are still in their house for over 4 years crazy huh! Check with an attorney and find out if this is true. We are all in the same boat we are all under water . GOD is in control of our future just trust that what ever happens we will survive. Because God is good all the time