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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 also heard that number 517,000. However, what I heard is somewhat different. As we know there is three differnt classifications that consist of that 517,000 number. “A”, “B”, & “C”
The B & C group automatically qualifiy for their part of the settlement. (they were not required to email proof that they had a mortgage that fell into the category.
The A group had to submit info via email or mail. So now the question is how many A, B,C fall into each group.
This is just an example. If the B & C group number of mortgagee’s totaled 100,000 and the balance (417,000) belonged in the A group, then if only 200,000 from the A group submitted their paper work for the class action suit… only 300,000 instead of 517,000 would receive payment.
The split would be less. That is why I feel we will get more that the quoted “$96.”
Same long story here. I am in middle of 3rd attempt with Wachovia. 1st time was in between jobs, told me we did not make enough, 2nd time I had been employed (Wells Fargo now took this one), they took 6 months to tell me we now made too much. We just went back…job/salary has been reduced and we are behind in mortgage, CA, jumbo loan, a bit sticky. I think we are near that magic window everyone refers to, our loan is not underwater yet, a small amount of equity left but we could argue that one. Will let you all know. Would definitely be interested in a lawsuit, all slimeballs everyone of them, I think they do everything in their power to find a reason not to modify so they can earn interest on the money! It’s a HUGE scam. even with the sad state of the country, it will be far sadder if all of us lose our homes….
The State DA for California is Edmund Brown and can be contacted by website with the details of the settlement. I wonder if Watchovia is testing to see if anyone gets angry or anything? If they really pay $90.00 to each person evenly, I’d be a little nervous if I were them. Do a search for the State DA for your state for details/updates. PS. I knew the checks wouldn’t be sent until the very last day, at the very last legal minute, didn’t you? Of course!
There are many homeowners that did not need to file a claim. Class B & C ~ so how ever many of those Class individuals there are could increase the number greatly, is that right? How are ‘they’ defining ‘claims’?
Its sad when the lawyers are being paid on our misery…they get to be compensated…what about the ones, like me that lost all my down and then some..plus i am backwards on my mortgage because i had to refinance…
https://pickapaysettlement.com/
Rust Settlement # 1-866-886-7224 and to receive a loan modification (which is part of the lawsuit) 1-877-546-8449.
I just got off with the Claim Administrator. I live in California and the checks were mailed today. According to the administrator I spoke with the estimate of 517,000 claims is consersative. There is actually more. So $96.00 might not be received. I am angry that the lawyers took advantage of the homeowners in this situation and made millions. I don’t understand the reason for a class action other than the greed of a law firm. I am writing my congressman. This is CRAZY. I feel exploited for someone elses gain.
I think the settlement will be higher than 96 but if it is 96 I will join the protesters with a wachovia sign.
Rust is the claim administrator the number is on pickapaysettlement.com