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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
Pick a Payment
oK Lynne again. Lets get together and start our own law suit. If we were not properly informed maybe we could get help. My email is escapecrusin74@yahoo.com. I can tell you first hand the banks will not modify these loans. Again I tried twice and believe me it was not my income. THEY MAKE TOO MUCH MONEY ON OUR LOANS. Mine was capped at 7% and interest is 4.5. If anyone thinks we should do this and knows a lawyer willing to help us on pro bono please contact me. I think that the Obama plan was set up to help people stay in there home EXCEPT PICK A PAY LOANS. Anyone with me here. I have tried to contact the lawyers on this matter and it seems that we all have the same story.
Wachovia
OK reading the comments everyone is right. WACHOVIA/WELLS FARGO whoever they are will not give us poor suckers a modifications. That is where the injustice is. The fact that we got into this smelly loan is one thing but we can’t get out! Its like a traingle. I have lost in interest alone over 15,000 in the last 4 years. I tried to modify with Wachovia in 2008 then Wells Fargo 2010. Neither would allow the loan. Why? They make too much money. I think we need a lawyer to represent the people. I think the lawyer who commented should do this. I want my money back….how about any of you? Last they just settled last night and you can read the paper on pickapaysettlement.com. Let me know your thoughts and any lawyer out there willing to represent:-( the people and not their pocket books.
We still have this loan today and the bank refuses to help even to this date…what can be done?
Wachovia
So, it appears that another scam is being placed over top of the original scam; why not? The banks have all of the angles.I wonder how many houses the banks are foreclosing on that they are getting back in states of total interior destruction due to their deceitful practices……. Serves them right
Wachovia
I have not heard of the final conclusion of the law suit. But whatever the results no one from the attorneys and/or either on the web site indicated the final out come and gave any figures. That is an out right deceit and should be vigorously fought in court. This is a double whammy, first you get screwed by World Savings/Wachovia and now by the attorneys. What a screwed up world this is. If this is a reality, any one for a law suit against these guys? Contact me at kdgashaw@comcast.net.
Wachovia
i still want for class action to help us end up getting the house.we hope a loan modification approval.wachovia keep denie loan modification.how obama programwork.the bank want your money and want to forclosure your house.wake up obama try to stop forclosure and contact the bank now.
Wachovia
On the website was posted it was going back before the judge on April 29th. Dont see any updates. Whats the status.
Wachovia
I have written to the lead attorney on this case asking for answers, after finding news articles which he stated “real cash recovery” would be made to members of the class. Obviously, $90-$100″ is not. A bio found says he worked for Wells Fargo some timeI Don’t know if accurate. Elsewhere, he reportedly said recovery for the class would be small, then we should have been informed of that. Case against Wachovia was about failure to disclose full facts. Seems disclosure of full facts would be required of plaintiff attorneys. If not,, even if the civil case not reversible, inquiry re responsibilities of attorneys to clients could be made with attorneys now, maybe elected officials later.
Wachovia
we had two home loans from wachovia.we re-fied our original home to remodel and sell.then the market went down.we put over $120k down on another house. we were stuck with two house payments.tried for almost two years to get the original house modified.never happened.we ended with a short sale .the other home by that time the house was only worth half of what we paid. kept asking for a loan adjustment.that never happened.went to foreclosure. we moved out of state to get a house we are renting . we are out of least $250k + we paid into the two homes on payments for three years. this lawsuit is a joke if they are only going to pay out a small amount. i feel that the bank should have to pay back everytrhing they took.there were a lot of papers signed illegally for a lot of loans. hopefully it will be straigtened out and we will all get back our money or houses keep hoping for a miracle…
Wachovia
:TRY NACA!
Wachovia
I am just curious we cant qualify for a loan mod after trying several times. One of us is unemployed and Wachovia wont use the unemployment income and we don’t qualify on just 1 salary. We thought there was so much money available and that they would work with us. When they plug our numbers into their computers they get a “do not qualify! Who is getting that $600 million dollars in loan mods because we sure aren’t! So, once the lawsuit is over and we collect our 90 dollars….what will happen to our loan? Will we still have the same loan we have now? Will new loan papers need to be written up?