Wachovia\Wells Fargo $50million Class Action settlement not so good if you want a loan mod
Borrowers who executed "Pick-A-Payment" Mortgages with Wachovia Corporation and other Wells Fargo subsidiaries now must choose between participating in the class action settlement or pursuing their own litigation. Case No. M:09-CV-2015-JF. https://pickapaysettlement.com/LinkClick.aspx?fileticket=CmmRlLH9Lmw%3d&tabid=149&mid=669
A San Jose Federal Judge has preliminarily approved a $50Million class action settlement against Defendants World Savings, Inc., World Savings
Bank, FSB, Wachovia Mortgage, FSB, now known as Wachovia Mortgage, a
division of Wells Fargo Bank, N.A, Wachovia Corporation, Golden West Financial
Corporation, Wachovia Bank, FSB, f/k/a World Savings Bank, FSB-TX, Wachovia
Mortgage Corporation, Wells Fargo Home Mortgage, and Wells Fargo Bank, N.A.
("Defendants"). Up to $25 Million will be paid to the Plaintiffs' lawyers.
The settlement sets up a loan modification program that has questionable value and leaves the lenders in the position of deciding who gets loan mods and who doesn't.
Borrowers must be evaluated for a HAMP loan modification first. If they do not qualify, borrower's can apply for a "
MAP2R Modification", as defined in the settlement agreement. If the borrower is ineligle for a mod, the borrower can do a short sale through the HAFA program.
The problem is that the loan modification process remains in the hands of the banks and are subject to the same non-transparent Net Present Value tests that are manipulated by the lenders. Potentially, borrowers who partake in the settlement will be subjected to the same loan modification nightmare that is currently playing out under HAMP.
The Firm suggests that borrowers consider opting out of the litigation and pursuing individual claims under the same legal theories raised in this case.
Borrowers must "opt out" before March 11, 2011.
