Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.
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.
Honda, Hyundai, Kia, Subaru vehicle data collection class action lawsuit investigation
May 17, 2024 | Legal News
302 thoughts onWachovia “Pick-a-Payment” Mortgage Loan Class Action Settlement
Wachovia
Didn’t get notified? just found out yesterday?
What can I do now? deadline past 03-16-2011???
Wachovia
i to applyed for home loan modification. just recieved denial letter . my payments are up to date and i do not show hardship over last 2 yrs of taxes reported . if your an attorney and read this is there anything that can be done to level the playing field of honesty:'( contact mikeweldit@sbcglobal.net
Wachovia
I sent my Pick-A-Payment opt out letter on March 10th, I received a letter saying my opt out is not accepted and I have until March 31st to post mark another letter. I hope you OPT-OUT!
Dennis Kelley is right on his comments.
“Save your rights for future use”
Wachovia
HAMP IS A SCAM created by BANKS, approved by our USA GOVERNMENT, and paid by TAX PAYERS..
I was denied a loan modification today by Wells Fargo. It seems if you make 5,000 net income and your expenses are 4,500 you don’t qualify for any modification. According to “OBAMA’s Administration” under HAMP guidelines, you don’t qualify for $hit if your expenses are not more than your NET income. Did you guys understand!
That means your DEBT/Expenses have to be more than your NET Income.
Hello!! “What about the government taking out taxes, insurance premiums, 401k which we are entitled to when applicable, FSA, Vision, or SSN/Medicare tax, state taxes, etc…. Is that not taken into consideration when considering what one could afford?”
I want to know which 4th rate lawmakers decided this one.
Wachovia
Is there anyway to opt out of this class action today? I didn’t realize that March 16th was the deadline.
Wachovia
I wouldn’t be surprised if they helped originate the lawsuit against themselves in order to minimize their exposure to future legal actions. They might have had their attorneys working on both sides of the case.
Because ninty dollar sounds like just a rediculously low amount….It’s like they are trying to buy off a bunch of uninformed people.
pick a pay loans
hi again
earlier question asked “how many loans”
at the height of the world savings program they closed 10,000 loans daily nationwide
dilute that number by $50 million settlement and you have an arithmetic reason to OPT OUT
Wachovia pick a pay settlement
hello everyone
i sold loans for world savings
OPT OUT OF THE PROPOSED SETTLEMENT
the settlement will pay you less than $100 estimated
OPT OUT TO PROTECT YOUR FUTURE INTERESTS AND GET A PIECE OF THE NEXT CLASS ACTION SETTLEMENT
mail your opt out letter, certifiewd mail return receipt to the address in the mailer you received
my phone # is 215*468*0914, leave a message and i will call you back to answer questions
the settlement may also dismiss your defenses in a foreclosure and let the bank take your house
great settlement ??? i do not thinkl so
remember…march 16th 2011 is a critical action date
Wachovia
In the packet I was sent it says “in addition to the settlement fund, the Defendents will pay up to $25 million in attorneys’ fees and costs and up to $1 million to administer the settlement.” I took that to mean that the lawyers fees would not come out of the 50 million settlement fund… but I could be wrong?
Wachovia
I have a pick-a-payment mortgage also and was wondering if 517,000 is a correct number for the borrowers and how and where can we verify it? I am trying to decide if I should exclude myself or be a part of a different law suit in case that number is correct: