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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
Remember no one cares about the borrowers, the lawyers are doing this for a pay day, after LEGAL fees the settlement will be doled out whatever that remains among thousands of people. It’s good to be a lawyer, better to be a connected corporate lawyer!
This is a total sham, the lawyers are working to line their pockets, borrowers will see little to no money from any possible settlement. The borrowers (victims) that sign up for this lawsuit are like people signing a petition, you’re only helping the lawyers get money, don’t be ignorant and think you’ll get a windfall of cash! You should hire your own lawyers but then again many of you can’t afford that which is obvious!
Exactly, why are 26 people getting so much more…we only got a notice of the law suit…never a chance to get on with the rest.
We had to refinance, or we were going to lose the home…we lost every bit of our down and so much more!!!
this is total B>S>
All appeals have been resolved and the Settlement is now Final.
why are 26 people getting 126,000 & the rest of us getting 90 I would like to know this answer, I tried to modify my loan 6 times & got denied 6 times, I think Wells Fargo does not have any intention to help anyone
We were under water and in bad financial shape on our home in Arizona. We had the “pick-a-pay” loan and were upside down about $400K. We were granted a loan modification, but we still could not afford the mortgage payments. We learned a lot and and finally did a short sale. Wachovia (now Wells Fargo) does not want these loans on their books. We also received $3000 in relocation assistance. Wachovia has made it very easy to do a short sale in Arizona and who knows if anyone will ever get any money from the settlement? Call me at 602-558-1671 if you have any questions on the short sale process or email at lisasipes@cox.net. Don’t let your home go into foreclosure….at least try and get some money.
Scam! They say they will modify but if you have equity you won’t qualify. They want your equity! Period!
All these complaints and nothing being done get a high priced lawyer to handle this and get everyone to be represented by him your on the wright track now do something about it.
I agree too! Count me in!