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 just called and spoke with a woman at the pickapaysettlement.com.
She said that:
-today is the 30th day and checks will be mailed by the 30th day
-everyone will get the same amount
-the settlement is 50 million and there were 517,000 claim forms mailed out
Not good-that would be a settlement of $96.00 for all.
Carline, who is Rust, Inc. Could you please post their phone #. Thank you
Just called Rust, Inc. and they state checks have not been mailed yet so I guess they’re waiting until tomorrow to mail.
Here in Florida I am wondering what $ we will get. We saved our home but it cost us way to much, they lied, no one had to answer to that and the modification for a now 40 year loan is a joke! I have saved all of my evidence would really like to sue them individually!!!!!!!!!!!!!!!!!!!!!11
as of the 5th oct called rust inc. who will b sending out the checks. they said the checks have not been sent yet
What was the point of the fairness hearing if it’s not going to be fair to the victims? Tell me this $90 is a joke.
how can any of us find out if we are even getting a check I still have not received anything they said we sould receive a payment within 30 days from Sept. 7th has anyone in New Jersey received a check? I
I am in California and did a short sale in lieu of foreclosure in May 2010. Would I be getting the estimated $2,650 as well?
I have been following this almost every day and to think I’m only getting $90, but I’ll take $9.00.
To think I have to wait until 2013 to buy again.
Best wishes to all…
WHOA! Everybody STOP!! Upon further studies, it’s plain we have a near ‘run-away-train’ here. It depends on the state you live in, for starters. I live in CA and went to Gov. Jerry Brown’s take on this matter. Personally I realize this is still a low settlement for the size we all lost and suffered through, but, to show the quote: “Wells Fargo is also required to pay $32 million in restitution to more than 12,000 pick-a-pay borrowers in California who lost their homes through foreclosure, plus approximately $1.8 million in costs to the state. Payments to foreclosed homeowners are expected to average more than $2,650.” (This is me again) It beats $90.00! To go back to fighting is a personal decision, but for me, I’ve (we) already formed a new and much better life and aiming forward. Sleeping at night ROCKS! I will post when the check arrives and confirm it’s amount. All the best…
We want to be in on the counter-suit, too.
I just read an article about the FBI going after preditory lenders. This could get the attention of the higher-ups!
Keep everyone posted!
PS. Has anyone gotten a check yet?