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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
It doesn’t matter. We filed a claim and sent us a lousy settlement check for $178. Took us another 10 years to get a regular loan. We have lived in the house for 15 years and finally got a 40 year loan with principal finally being paid. Best joke of it, we will be in our 80’s when it’s paid off! Bahahaha!
I have spent more money on lawyers attempting to save my home. They don’t care I have tried load modification and now they have a new thing if your are in arrears over 3 years they are not considering you for loan modification. When does it STOP. You do the right thing and they don’t care for there customer. I am so disappointed and upset. They have playing with life. I wish and pray that people just look on a bank that cares.
Unreal no one contacted me I had 5 pick a pay and there all very bad just found out I paid 4 then off and it was a RIP off I over paid and for 7 years the prinpal never went down it stay the same or went up i was NEVER late
Wells Fargo bought Wachovia and the Feds forced them to offer modifications to get all of us out of their Pick a Pay loans. The modification I received was doomed to fail from the beginning with quickly escalating interest rates and small principal payments. Now I can no longer afford a 6.5% rate on a large mortgage on my underwater home that continues to lose value. I’ve decided to do a strategic foreclosure because I won’t continue paying high interest on an a depreciating asset with no remaining equity. It’s a business decision that I don’t feel guilty making, especially after my negative experience with Wachovia and Wells Fargo, who is the worse culprit of them all. The recent judgement on their credit card fraud case is just another reminder of how unscrupulous they are.
Hello, so sad all of us didn’t hear of this! Hoping they open up the case to let us all in on it! NOT FAIR!!
I did not hear of this until just now. My house ended up forclosing back in 2010 ive been screwed ever since.
Wells Fargo who owned Wachovia foreclosed? They’re the worse bank in the USA. You should have at least been offered a reasonable modification as the Feds mandated that they divest these predatory loans.
I have to say that when I contacted Wells Fargo in reference to a Home Modification Loan I was by one of their reps that I could not get one and i explained that Me and my spouse was going through a hardship and was denied. this was during 2010 and I have to say with all that was going on the house went into foreclosure and we ended up divorcing. I would like to Thank them for all their help especially with putting the black mark on my credit report. I was inform by a co worker to contact them and applied for the home modification loan and I it was like a slap in the face.
Now it is 2017 and I never knew about this settlement option. I had one of these loans and I had to file bankruptcy to stop foreclosure. Eventually I had to move. I was confronted with a Real estate broker who said he represented these banks and presented me a small check to move out so the house could be sold. I feel like I was taken advantage of. Is it too late to make a claim on the lawsuit or to even creating one? My home was so negatively amortized it was nuts to even think I could catch up.
Jen,
I am in the same position not knowing until October 2017 and my husband died and my home was sold at auction despite in middle of short sale review. World Savings is who we had pick a pay loan with.
Does anyone have access to an attorney that could help with this issue.
I wish
I am also going to be heard. I am two years into a major lawsuit agaist WF. Richards vs Gregory Funding – google it. CA
I just saw this, never knew of such a case or settlement. How do we who for whatever reason were not part of this lawsuit but have the same issues benefit from this?
It is now 2016, I have spent over a year working with KEEP YOUR HOME CALIFORNIA a Federally funded organization who claims to help people who are struggling to keep their homes. I was pre-qualified for assistance three times. At one time after being denied assistance, I was told to reapply in a couple of weeks because the agency was changing some policies and would be receiving more funding. I reapplied for the third time, provided the same information the I had already given to them and waited. Again, I was questioned about my circumstances, and encouraged to continue with my quest for assistance. I originally sought their help because my savings and retirement funds had been used up trying to keep my home. I still have equity after being a homeowner for over 20 years, but in the past 8 years I have had 6 surgeries and three medical procedures. This is a contributing cause for my inability to make the inflating mortgage payments. My house is not just my home, but it has been where I work. I have made improvements in order to work with the disabilities that are now a lifetime challenge. I was at NO TIME informed that I would not be a candidate for the principal reduction that I had been pre-qualified for. A principal reduction and modified interest rate (something in keeping with present interest rates, instead of the 7.05% Ive been paying) would make it possible to make my payments. I never received notice of the Class Action suit and now I face foreclosure because the loan I paid regularly, was negatively amortizing. I now owe more that when I first bought the home. Now iti s 2016 and I am facing foreclosure and bankruptcy because the loan that should have been buying down my indebtedness was simply compounding the outstanding debt. Shame on World Savings, Wakovia and Wells Fargo Bank! Not to mention Keep Your Home California who seem to be operating simply to create jobs for their staff rather than operating as my advocate. No what? I am single, disabled and fast becoming a senior citizen. My ability to work depends on being in a physical situation like I have created in my house, again I ask – what now?
I too still have this Loan and they refuse to do anything ( wont refinance and they re-acquired their own loan)…try consumer protection agency…if you hear anything let me know.
Hello Denise I was wondering if you were able to resolve mortgage problems? Your situation is very similar to ours
It is now 2017 Also in a similar situation, what did you do Crawford?