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 have been in the Mod program for 3 and a half years they keep droping me picking me up and procrastinating mmmm what could this mean they. Could just get it over with mmm im confused.
What is this about? $2000? Is that for everybody, in addition to the $178 check? Curious
I receive a letter.that states will be receiving a $2000.00 check Does anyone knows when will be mail. Thanks.
I just spoke to the so called administrator of the State of California. I have got check. I was told it would be sent out after 30 days????? The ltr. states we will be getting at least 2000.00.
I would be interested in learning if anyone who opted out of the class action suit has subsequently filed suit against them.
I understand that the class representatives got about $150K each and there were like 16 of them.
I intend to sue them independently and negotiate down my principal balance but timing is everything and I want to find out what the statute of limitations is to file suit and if anyone else has been successful.
I also was a part of the Pick-a-payment. I am in California. I received a check for $178.04. I will not cash this. I tried to get a loan modification and they denied me. Now they have me on interest rate that changes yearly. That just came in the mail. I tried to call today and of course, they systems are down. I am appealing their decision. If I am denied again, I am getting a lawyer. Enough of this ppl trying to screw the little guys. $178.04, what a slap in the face.
I had opted out as soon as I read the settlement terms; they screwed me once, but no way – not twice. I have an active law suit against Wachovia ever since they refused to MOD my loan back in Dec of 2010, even though I was told, prior to signing, that I could MOD my loan at any time for the life of the loan/.. What BS, it was all one big scam! My layer is “Airan Pace Law, PA” 305-609-6670. My E-mail is Simonri11@peoplepc.com
Hi everyone, I’ve been turned down by Wells-Fargo two times now for a Loan modification. They want me to apply again, PLEASE I NEED HELP! FN said best place to apply for a modification is through YOUR state’s DA’s office, but to read up on mod qualifications before applying. There is so much info. out there and lawyers who will do it for you for a fee. Is there anyone on here that can give me some good sites where to start? Also Sharon said, “cash the check, it’s over for you.” I did not cash my check yet. Please, I need some help! Please email me at homesinnj@hotmail.com
Thank you very much, Bob
So…I did cash the check, wish I didn’t, but needed the money at the time. I’m a single parent, trying to pay all the bills on my own, make ends meet just week to week at this point. I have til next November before it all hits the fan. $20,000 to be rolled onto my $200,000 mortgage! I make $11.25 an hour, which as we all know is nothing. So how am I going to pay the payment come next November? I understand their not to willing to give you a loan modification unless your 90 days in default, and that doesn’t even mean they will do it in the end. Its a chance u take, more likely they will want to foreclose! These banks are not for us, all this stuff Obama was talking about with the loan modifications is bull, cause when push comes to shove, all they say is you don’t qualify. Then who does?
I just got a card asking me if already cash the check but I didn’t get a chech or even the first notice about it. can i still do something about it?