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 completely and accuratly filled out the claim before the dead line in May 2011. On the website that I filled out the claim form it stated that checks will be mailed out after January 31st 2012. It also stated a minimum of $2000.00 would be sent. It is now Feb 13, 2012. Checking my mailbox every day. Wondering what the phone number is I can call to check status. Anyone have any similiar situation let me know… Thanks, Bret
Sorry, the above statement I meant to say January 31st 2012. Correction.
I completely and accuratly filled out the claim before the dead line in May 2011. On the website that I filled out the claim form it stated that checks will be mailed out after January 31st 2011. It also stated a minimum of $2000.00 would be sent. It is now Feb 13, 2011. Checking my mailbox every day. Wondering what the phone number is I can call to check status. Thanks, Bret
We have one of these loans and have tried numerous times to do a loan mod and have been turned down 3 times. We just heard about this class action suit and am wondering why we never received notification of this suit prior to its settlement. Does anyone know who we can contact?? The only thing we can think as to why we didn;t get any notification is because it was made to an LLC, instead of an individual. Shouldn’t matter still a bad loan!! Can anyone give us any helpful information? We would appreciate anything to help get us in the right direction. Thanks.
Call your Congressman in your county they are working to help with all the forecloses and might be able to help you with your loan.
We got the check and will never collect it, this is blood money. I contacted the governor of CA twice, Kamara Harris, Sacramento, FTC, Obama, faxed a letter to Obergast & Berns, lead attorneys in CA….. zero result. It wasn’t enough to be raped by the banks, now the attorneys had their turn. I will never vote for anyone in government. 517000 were thrown in a shark tank, the sharks being the banks and attorneys. Wachovia told us to stop paying while working on the loan mod, 3 months. They sent a letter that a new account had been opened for us, two days later they cancelled. Credit rating went down and we had to pay penalties. Why does the government endorse this behavior. So much for the land of opportunities. Not.
I received a notice in the Pick A Payment Settlement last December stating that they had mailed me a check in the settlement and it needed to be cashed by October 7th of last year. I called the number on the card and was told that i needed to write them a letter stating I did not receive the check. I immediately wrote them a letter stating I did not receive payment and have been calling them every since. They rudely say they have thousands of responses and have no idea when they are going to repost the checks.I have a feeling they are not going to repay these claims unless something is done. Does anyone know the names of the Attorneys who brought the lawsuit to court? Please e-mail me at [email protected] because this company needs to stand accountable for their fraud!.
Has anyone contacted Kristen Crone, Attorney at United Foreclosure Attorney Network? They are putting together a multi-party action against Wells Fargo. ufanlaw.com. We are thinking about signing up. Any personal experience with them?
You had to have filed a Claim Form either by mail or online by December 9, 2011 to receive the settlement check. The original settlement states that no one shall receive less than $2,650. I questioned why the letter that was sent out says $2000 as a baseline and was told the DOJ AG’s Office was who set the amount. Well they set it at $2.650 minimum. This claim was strictly for people who lost their homes to forclosure during 2009 – 2010. There were specific dates. You can find the original settlement on the State of California, DOJ AG website. I opted out of the $178 settlement so I wouldn’t be limited in future suits. I also just received letters asking for specific information regarding my pick a pay loan. This is being request by the Federal Govt. now.. They are now investigating all the major banks…Good Luck to all and may everyones future be much better than the past couple of years.
I send an email to the settlement administrator questioning the letter that I received. I had a reply stating that sometime after January 31 I will be getting the 2000 check. I hope this will go to Avery person that receive the letter and I hope that when they said that sometime after Jan 31 is not going to take the whole year. I lost my house and I have been without a job for the last 14 months. This will help me alot.