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
Dec 2011 Wells Fargo representative from the Ofc of the President of Wells Fargo contacts me for a response to OCC complaint she lies and says I am non-responsive funny thing I have proof of all my failed attempts to contact her (its called a phone bill) Jan another rep from same dept contacts me (oh did I mention I have now applied for a modification four times) I need to complete my fifth and final mod app Jan 2012 Notice of Auction on my front door Feb 2012 told short sale or we will foreclose Mar 2012 six offers on the table they deny my modification (surprise there) I mention this settlement and I am told a rep will contact me I get a letter a few weeks later saying that I forfeit my right because I never provided the paperwork necessary
Sept they start rtn my checks claiming I owe $12000. October File and NOD November I file a complaint with OCC. I speak with a receptionist for J. Stumpf CEO and Pres of Wells Fargo in order to set up an appt/mtg she states Mr. Stumpf does not meet with “common people” he sure has no problem taking my money and going on CNN claiming he want to be here for the people and help make this situation right
They establish an escrow acct under “Breach of Duty Clause” which states they can pay impounds if you “breach you duty” and don’t pay them. The next thing I know my payment goes from $2100 to $3100. I send them a ltr stop cancel this bogus escrow acct ect adjust my payments back to $2100. The create a “suspense acct” which is illegal. Wells Fargo misappropriates my funds for every 2 mtg pymt I make they charge me two late fee and one past due mtg in the amount of $3400. My husband and I receive seperate ltrs one says he owes $4000 in back mtg mine says $9000 we have a single mortgage. So do we owe 4 or 9 or $13,000.
I tried to refi in Jan 2011 I was current just wanted out of this loan. I was told they don’t do refis only modifications the next thing I know they are claiming I am failing to make my pymts. Funny thing I have all the cancelled checks. Then they claim I breached duty by failing to pay my property taxes, home insurance. Funny thing I have proof fm LA Cty Tax Access Ofc and my home insurance company I am current and paid.
I have two pick-a-payment loan initiated during the period 2003-2008 on two homes that are currently over $100K underwater and I am not having success with loan modification with Wells Fargo whom my loans have been assigned to.
it’s true!! i got $5713.26 from the mail yesterday!! the only one thing i’m not happy about is i also got. 1099 misc income. hopefully all of you are getting it too!
John, Seriously! Are they finally paying up? I lost my home as well back in 2008. I was in the pick a pay in the right time period. I filled out the proper paperwork on time and have been waiting for almost a year! How did it go for you? Please let us know. Thanks,
Wow it’s true! I went to my mailbox and found a check from wells fargo. $5713.26 for being foreclosed upon from Wachovia. Small constellation for losing my home!!!
Could someone please e-mail me a copy of the World Savings
Pick-A-Payment settlement opt out letter/form
[email protected]
thank you
Cynthia and Ann, please tell me more! what do u say to them? I have been in contact with Wells Fargo about trying to refinance or get a loan modification, they said they have some programs they r working on to help the people who had the pick a payment deal. Does this sounds right?