Wachovia Settles Pick-a-Payment Mortgage Loan Class Action

If you obtained a “Pick-a-Payment” mortgage from Wachovia between Aug 1, 2003 and Dec 31, 2008, you definitely need to check out the following article posted on “The Consumerist” website:

Wachovia Settles "Pick-a-Payment" Mortgage Loan Class ActionIf you got a “Pick-a-Payment” mortgage from Wachovia between Aug 1 2003 and Dec 31 2008, you might be up for claiming some cash in a $50 million settlement.

The settlement alleges that the bank deceived customers by not fully telling them that there could be negative amortization if they opted to make a minimum payment during a limited time under certain allowed conditions.  If the payment was under the interest owed, the remaining interested was added to the principal.

Two of the three settlement classes will automatically receive payouts from the settlement. If you sold off the property having the Pick-A-Payment mortgage, refi’d, paid off the loan, or got a loan mod, then you need to submit a claim by March 16, 2011.

For more info on the suit re Wachovia Corp. “Pick-A-Payment” Mortgage Marketing and Sales Practices Litigation, Case No. M:09-CV-2015-JF and submitting a claim, check the settlement site.

Submitted by Kathy Khalil, Realtor®, Elaine Brabham and Associates Real Estate

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