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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
I agree with the above comments, I feel we were all blindsided and they ran it by us in such a hurry without of us knowing the full details. We should have had a say in the final settlement payout amount of the 50mil. It was mentioned above about a class action against the attys.I agree, count me in ….
Modified after bankruptcy. Tried again 1 year out. Was denied, because our payment was within the 31% of gross before taxes. TOTAL BULLSHIT ! ! ! !
Would like to be included in Appeal.
My comment, it made it difficult for anyone to make a decission on whether or not to opt out of the lawsuit, with out having every detailed disclosed to you. Like how many home owners are involed in the lawsuit. Let the sum of the disbusment justify that number of home owners involed, not what the banks felt they could afford to sustain a profit. The amount of money paid into the pick a payment program, by the homeowners, I’m sure it’s more than fifty million. Another fault on the banks for failing to give full disclosure. This should lead to another lawsuit.
I just got approved for a loan mod after trying 3 times. I think it had to do with the numbers I calculated. I had to be creative and have solid proof in order to make it work. Lots of documents and late nights but somehow I did it. Anyone who wants my help can call me directly and I will try to get back to you as soon as I can. (858)492-1329 and please speak clearly if you’re leaving a message, mahalo!
The numbers breakdown this way as of 8/19/11. $49.875 million is the settlement fund total and you divide that by 289 thousand people or settlement payments and YOUR TOTAL EXPECTED PAYMENT is $169.55. I wonder if the TARP Payment total that was given to this bank helps them pay this…..What a joke!!! Don’t spend it all in one place folks, and these people are not being allowed to redo there mortgages… what a scam!!!
Wachovia/worlds savings
Hello everyone. My question is, my parents are loseing there home because of this pick a payment thing. so what i would like to know is how do i know if we have a good case? Because money being as tight as it is this is something that we can’t just rush in to without thinking, so i would really appreciate any advice. Thanks :-)
Wachovia
Thanks god someone smart filed these appeals hopefully we are all part of the appeal automatically!!!
What this bank and lawyers have pulled on us is another scam of great proportions.
I never signed up for this settlement, but missed the deadline to opt out. $50 Million . ~507000 loans = $9-10, that is your settlement!! It’s another scam!!! on top of the original one and you can never be part of the another law suit!!! Everyone should find out somehow how to join that appeal suit
Update – Tuesday, June 21, 2011
The deadline for appeals was June 16, 2011, and three separate appeals have been filed. Payments will not be mailed to Class Members unless and until all appeals are resolved. It is uncertain whether the Court of Appeals will affirm the Final Approval Order and if so, how long that process will take. Any updates on the appeal process will be posted on this website.
Keep the fight, don’t let the banks and lawyers ruin us more then they already have.
Wachovia
There must be an expiration date for the completion of this CA lawsuit..The judge gave preliminary approval on Dec 16, 2010. How long by law do they have to complete this process? or can they postpone it indef pending our deaths? Just seems to me that there must be a “completed by” date documented somewhere. And if they can’t meet that then this should be up for the filing of new lawsuits.
Wachovia
I am in the same sinking boat and would like to be contacted in any action against these predators. My email is lynn2828@gmail.com. Good luck to us all…:-(
Wachovia
I would be interested in knowing what the appeals are. Wells Fargo was just fined $ 85 million and that will be divided up among some mortgage holders but it isn’t clear who will benefit from that payment. I assume they couldn’t be part of the class action. Although I have been able to refinance my home I am over $100K in the hole because I believe the mortgage broker. From the first month I received the mortgage through World Savings I knew something was terribly wrong and that I was lied to. The mortgage principal either stayed the same or went backwards based on the payments I made, I could rarely pay the full amount and went further into debt trying to hold on. I don’t want to settle for this and had I know that this was the path when I opted in I never would have taken this path. Is there anyone that has appealled who can share with us why and a plan going forward? I see people writing with ideas but no one seems to be anwering to the details.