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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
Wachovia
I would rather give back (if I get it!) the $90 and sit down with a mortgage person to write a new loan with a reasonable APR where I can afford to have the home and still have it paid off in the time frame I was told I would be mortgage-free… $90 would barely fill my gas tank or feed all my children school lunches for a month.
Wachovia
Over the past 1.5 years I tried twice to loan mod. 1st time they said I made too much, next time too little and debt to income ratio too high. Never missed a pymt but currently upside down.
Self employed so hard to verify income but was not a problem when getting loan! I recently read where B of A was automatically reaching out to toxic assets like ours and making deals direct without even being contacted.
Wonder if Hells Fargo will ever get there?
Wachovia
We signed up to be included in the law suit thinking it will help, now I feel very bad reading from your comments that we would get $90 -$ 100 on the settlement, I am also aware that 3 appeals were made on the case. We need to do something about our situation. Please let us know if anyone comes up with something.
Wachovia
88 Yr. old mother and husband owned home since 1971. Husband died in 2005, left her very little. In 2006 was tricked into signing loan docs with grossly inflated income & forged signature of DECEASED husband World Savings original lender, should have known something not right with drastic INCREASE in income AFTER death of sole income earner. By 2007 got behind on payments, Wachovia tried to foreclose. Got lawyers, filed lawsuit. They were incompetent, couldn’t connect brokers to Wachovia, falsified loan docs. Mother signed settlement agreement with 30% income mortgage payments, 1% interest for 5 yrs then increases, no principal reduction. She had to sign away her right to file any future lawsuits against Wachovia. Currently almost $300,000 underwater. When she can’t make payments or dies, Wachovia/Wells Fargo gets the house. Many details left out but this pretty well summarizes story. So she couldn’t be part of this class action anyway, right?
Wachovia
This is the crime of the millennium!!!!!!!!! No one will get a loan mod if you work and pay on time. The only way they consider is if you are in default and once that happens the real investors get paid by the insurance they have that pays the face value of the loan times 30. So a $300,000 loan is now worth 9 million to the investor. That is why they came up with the great loan mod so those that were paying won’t pay and then get denied. But who gets paid? The investors!!!! Individuals that are fighting on there own are getting results there titles quiet and $$ for damages. This is the most debt you will have in your lifetime. You must fight yourself to save your home!!!!! Start with getting a forensic audit on your closing documents. Don’t give up!!!!! You future generation is depending on you to make the right choice!!!!! Fight!!!!!!
Wachovia
KD,
The web site is pickapaysettlement.com. that is the offical web site for the lawsuit. It was updated on June 21st. It said that there have been three seperate appeals. It didnt say what they were.
Wachovia
Hi…I know something has to be done. Just to say we agree with this settlement is bull. Why should all of us settle for this $90? That certainly is not fair to any of us! On top of that none of us will even be able to get a loan modification either! I agree we should try to fight this somehow. I know I am willing. If enough people stick together on this, somebody should listen. Count me in!
Wachovia Pick A Payment Plan
Dear Cathy Can you please point out where yo were able to see the appeals and do you know on what basis were the appeals made and who appealed. It would help matters if we can get some of the information here.
To all others, a few of us are exploring a law suit gains this so called settlement. How can we do it and how many would be interested and what mechanism can we use to gather a list to explore all avenues left to us if there are any. BofA just settled for a 8.5 billion settlement on its mortgage fraud issue that stemmed from is Countrywide acquisition. That is also being considered not averrable to home owners. So the struggle continues and we have to continue to fight this injustice in favor of the big banks.
Wachovia
I don’t know about anyone else, but my loan officer never told me that my rate would vary (go up!) every year for the first 10 years August 1st on my FIXED RATE PICK-APAY mortgagge. Whats fixed about that!!!!! Every page of the mortgage agreement says fixed rate. now that I have gotten my yearly paperwork, going up to 7.50%….what the f!!!! anyone else suprised by not fixed rate. of course when I look at the papers I signed….page 20 spells out the rate increases on my FIXED RATE mortgage. trusted my bank. shame on me
Wachovia
I to tried for a modification and was turned down. If their is a new lawsuit, please contact me and I would participate.