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
Beware of the loan modifications as it takes you out if your original World Savings Loans that were securitized which dud pay off your mortgages…
You will probably loose the ability to take that approach if you modify your loans. Chances are your loans have all been paid off two or three times.
If you look at the original note it says “when this debt is paid in full”…it doesn’t say it has to be paid “by you” and it doesn’t say paid three and four times.
The bank probably owes you a ton if money since they continued to collect payments from you after your debt was paid not to mention “double dipping” after your loan was securitized. We all need to stand up to the banksters.
I have been in touch with Jeffrey Burns the Supposed Plantiff Attorney. Even if you did not opt out of the class action you can still sue the bank. Everyone needs to get a copy of the class action settlement and go to page 42 where it discusses the court mandated modification program that Wachovia and Wells said does not exist. Write emails to Burns as well as to the Judge and Defendant attorney. I understand there is over 250,000 people they were suppose to modify and set aside a billion bucks. Program vanishes (well it never really existed in 2013) or just modify your loan to 0 owed and record it since World never signed your original loan docs and only you did..heard this is also working!! I have not got a bill all year !!
What about a whole $85 from 500000000 !!!!!
How you like that ?
We refinanced after our pick a payment reached $199,000
but are now facing foreclosure due to inability to pay the new loan. The principal would have never gotten that high had we not been in the pick a pay mortgage which tacked $40,000.00 on to our principle. Do I qualify for the mod?
ARBOGAST & BERNS LLP
Tel: 818.961.2000
F818.936.0232
[email protected]
[email protected]
http://www.law111.com/LoanMod/
I found this, not sure if its legit. I would try calling the attorney. please post if this is correct.
okay, just wondering if they are trying to help people get loan modifications. Thanks!
I received the same letter from BernsWeiss but I’m not sure if this is legit.
Ok, so I just received a letter in mail today from BernsWeiss attorneys who claim to have been a lead attorney in this class action lawsuit with Wachovia. They seem to be investigating the fact that they promised to give out loan modifications, but failed to do so. Has anyone else received a letter in mail?
Did you purchase your house in May 2004 or before? I think there is a time frame to qualify. I think the 178.04 or $2000 is nothing compare to the mortgage payments we are stuck with. I wish I could just refinance my interest. WF makes it hard to do a HAMP.