pick a pay settlement and predatory lending claim

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Crystals Cave

LoanSafe Member
Oct 4, 2012
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well it seems my predatory counterclaim against w.f. was covered under the pick a pay settlement we participated in before we knew we were on the verge of foreclosure. has anyone had experience with this.

my other defense was w.f. had not produced the note which they still haven't done. i've asked them to validate claim amount through a QWR. attorney told me they are not responding to document demand or QWR in that they are going for summary judgement. further because i signed off on settlement and received a subsequent modification, they don't have to participate in mediation. so i guess i feel like i've played my best hand and it wasn't good enough.

anyone identify.
Thanks, Crystal
 

hfrances

LoanSafe Member
Dec 4, 2012
48
0
6
well it seems my predatory counterclaim against w.f. was covered under the pick a pay settlement we participated in before we knew we were on the verge of foreclosure. has anyone had experience with this.

my other defense was w.f. had not produced the note which they still haven't done. i've asked them to validate claim amount through a QWR. attorney told me they are not responding to document demand or QWR in that they are going for summary judgement. further because i signed off on settlement and received a subsequent modification, they don't have to participate in mediation. so i guess i feel like i've played my best hand and it wasn't good enough.

anyone identify.
Thanks, Crystal
Crystal - I have the same loan as you. We are in CA and consulting with an attorney. The pick a pay settlement case has been reopened by Jeffrey Berns (the attorney appointed by California ATtorney General Jerry Brown back in 2009) who is claiming that WF is in complete breach of the settlement. They were supposed to modify loans and modified less than 2% of applications. The complaint states that their non-compliance with the pick-a-pay settlement would make the whole fact that we "signed off" on the settlement by cashing a $174 check null and void. We (the plaintiffs) released them from future claims in return for their compliance with the settlement - ie modifying the loans. They are clearly in breach. Here is the link to some of the press coverage. Wells Fargo not modifying mortgages as required, lawsuit says - Los Angeles Times


You don't have to be in California to contact Berns And Weiss. There are no costs involved. As pick a pay loan holders we are all being automatically included as class plaintiffs. I would call them and explain your case and that foreclosure is imminent - there is a hearing on Jan 31 - the attorney is asking for a complete moratorium on all pick-a-pay foreclosures until he has reviewed all of the applications that the bank denied.

Berns and Weiss web site - 818 961 2000

Which state are you in?

Good Luck,
 

Crystals Cave

LoanSafe Member
Oct 4, 2012
22
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hi hf.... i responded with thanks for your note but don't see it in the thread. my regrets.

i don't know if i can benefit by this new action unless the agreement is ruled null and void. I was in "Class A" because I received a prior modification in 2010. it didn't help as my LTV is about 200/100 but for some reason the attorneys decided Class A plaintiffs weren't entitled to loan mods under the agreement; just the $178.00. Totally bummed as I had my hopes up until I read of this in the actual settlement agreement this evening. Did you hear anything about today's hearing?

Regards, Crystal
 

hfrances

LoanSafe Member
Dec 4, 2012
48
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hi hf.... i responded with thanks for your note but don't see it in the thread. my regrets.

i don't know if i can benefit by this new action unless the agreement is ruled null and void. I was in "Class A" because I received a prior modification in 2010. it didn't help as my LTV is about 200/100 but for some reason the attorneys decided Class A plaintiffs weren't entitled to loan mods under the agreement; just the $178.00. Totally bummed as I had my hopes up until I read of this in the actual settlement agreement this evening. Did you hear anything about today's hearing?

Regards, Crystal
Hi Crystal - I checked the court files and nothing up as yet. As soon as I see any news I will post it.

hfrances
 

hfrances

LoanSafe Member
Dec 4, 2012
48
0
6
Hi Crystal - I checked the court files and nothing up as yet. As soon as I see any news I will post it.

hfrances
Unfortunately the Judge did not grant a moratorium on the foreclosures. The case will continue. As a new judge is taking the case over I don't see a hearing date yet but will post if I see any updates. I doubt this will be a quick process!

hfrances
 

Crystals Cave

LoanSafe Member
Oct 4, 2012
22
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Thanks for letting me know. Where do you find your information? Pacer? Are you using the new lawsuit as a defense to a foreclosure action? I'm in NJ and have been identified as a belonging to Class B but I think I'm in Class A but who knows.

Thanks Crystal
 

hfrances

LoanSafe Member
Dec 4, 2012
48
0
6
Thanks for letting me know. Where do you find your information? Pacer? Are you using the new lawsuit as a defense to a foreclosure action? I'm in NJ and have been identified as a belonging to Class B but I think I'm in Class A but who knows.

Thanks Crystal
Hi Crystal - a combination of PACER and a note to class members on the Berns and Weiss web site. You do have to get a client log on Berns and Weiss to access the updates from Berns and Weiss. We are not in foreclosure but did not get a mod and are waiting to hear if our attempt to get a mod 2nd time round has been successful. I have also sent a QWR to WF but have heard on a number of forums that WF often does not respond or tells you to subpoena them. I have a feeling that the pick-a-pays remained portfolio loans and so we won't learn anything of use to us anyway. There were some securitizations of World loans but most were portfolio. Bank of New York Mellon is the trustee for some of the World Savings trusts but they are private deals and so no one seems to have been able to get in there to find specific loans. We took out our pick-a-pay at the end of 2007 - how about you?
 

Crystals Cave

LoanSafe Member
Oct 4, 2012
22
0
0
Thank Hfrances... I will open an account with BW


We took out p/a/p in 2003. Then when world savings was taken over by wachovia in 2007, the mortgage was converted to a fixed rate with one payment option tripling the monthly payment. that did hurt and we spent 3 years trying to stay above water. in 2010 we got a modification under HAMP which did reduced our monthly coupon temporarily by increasing the term of loan. We were desparate but in retrospect it wasn't any better a deal than the original pick a pay loan. And it did nothing to address the LTV and now we have a $260k loan on a house worth $150k.
Our main problem has always been NJ real estate taxes which in NJ are outrageously high. NJ taxes are about $9,000 on a house worth less than $200,000. We didn't have an escrow account when WF learned we were one tax quarter behind on our real estate taxes. WF started paying our taxes and wouldn't except any partial payments from us. that's how we fell behind.


also we did send a QWR to WF last month and they sent us a letter saying it wasn't valid and they have copied our attorney and welcome any reasonable request from our attorney. We don't have an attorney however. Sometimes i am beside myself with anger at how these reptilian creatures treat homeowners.


good luck with getting a modification. it seems the key is to get your house appraised fairly. why did they reject your first modification request?


Regards, Crystal
 

Crystals Cave

LoanSafe Member
Oct 4, 2012
22
0
0
Hi Crystal - a combination of PACER and a note to class members on the Berns and Weiss web site. You do have to get a client log on Berns and Weiss to access the updates from Berns and Weiss.
How do you get the log in? Thanks, Crystal
 

hfrances

LoanSafe Member
Dec 4, 2012
48
0
6
How do you get the log in? Thanks, Crystal
Hi Crystal - You need to complete the form on the Berns and Weiss page to get a login. Where it says World Savings/Wachovia Class Members. Or you could just call them - the staff are very helpful. As you did get a modification (which apparently most did not) you may not qualify as a class member, but I am not sure.

We were turned down because the underwriter said the payment was affordable. Since then we have begun making payments on our 2nd so that may have changed the numbers enough to make a difference.

Do you believe that your are owned and serviced by Wells Fargo? Have you asked about a modification specifically under the AG Settlement? We were told by WF on the phone that we were not eligible so I wrote to the CA AG to complain and got a call back from someone in the Office of Executive complaints who is putting our application through specifically for an AG mod. The AG mods can include a principal reduction. Have you been in touch with your AG? The Wells Fargo consent judgement under the settlement is here https://d9klfgibkcquc.cloudfront.net/Consent_Judgment_WellsFargo-4-11-12.pdf.

hfrances
 

Crystals Cave

LoanSafe Member
Oct 4, 2012
22
0
0
Do you believe that your are owned and serviced by Wells Fargo? Have you asked about a modification specifically under the AG Settlement? We were told by WF on the phone that we were not eligible so I wrote to the CA AG to complain and got a call back from someone in the Office of Executive complaints who is putting our application through specifically for an AG mod. The AG mods can include a principal reduction. Have you been in touch with your AG? The Wells Fargo consent judgement under the settlement is here https://d9klfgibkcquc.cloudfront.net/Consent_Judgment_WellsFargo-4-11-12.pdf.

hfrances
yes and they have produced the note. was this a separate action from the other wachovia class action?
 

Crystals Cave

LoanSafe Member
Oct 4, 2012
22
0
0
Hi Crystal - You need to complete the form on the Berns and Weiss page to get a login. Where it says World Savings/Wachovia Class Members. Or you could just call them - the staff are very helpful. As you did get a modification (which apparently most did not) you may not qualify as a class member, but I am not sure.


hfrances[/QUOTE

Because we received a modification under Hamp in early 2010, i think i am a member of class a who isn't entitled to modification under the WCA but Wells Fargo has identified us as member of class b in it's "Motion to strike our defenses and counterclaims with prejudice". So I'm wondering if there is something I'm missing who if they made a mistake. If I am a member of class b then i should be entitled to reapply for modification that might provide real relief. We simply can't afford an attorney and have been denied free legal aid because we aren't poor enough. I guess when I'm living under the flipping bridge in town they'll give us free legal aid or a blanket. Sorry.... just really feeling defeated and in need of divine intervention.

Today I will perfect my Objection to their Motion to strike on the basis that the settlement is in litigation again. Were you told that agreement could be considered null and void if plaintiffs are meritorious?

Thanks, Crystal
 

Crystals Cave

LoanSafe Member
Oct 4, 2012
22
0
0
Hi Crystal - You need to complete the form on the Berns and Weiss page to get a login. Where it says World Savings/Wachovia Class Members. Or you could just call them - the staff are very helpful. As you did get a modification (which apparently most did not) you may not qualify as a class member, but I am not sure.


hfrances
There was a class A who had received loans, and we were part of the settlement. So if the agreement is found null and void, then we should benefit by that.

Hey could you give me the exact case number of the new action. It's blurred on the website and I really need it now. I've tried other ways to get it but have been unsuccessful.

Thanks, Hfrances, for listening, for your time and your help. May it come back to you tenfold.

Crystal
 

hfrances

LoanSafe Member
Dec 4, 2012
48
0
6
WF/Wachovia loans etc

Hi Crystal - I have (I think) attached a pdf of the complaint with the case number on it.

Just to be clear on a couple of things - the hearing last week on a moratorium on foreclosures was heard as some kind of extension to the original settlement 5:09-md-02015-JF.

The "new" case alleging they are in breach of the settlement is: 5:12-cv-06228-HRL

The AG settlement was something completely different - Wells fargo participated in the National Mortgage Settlement in exchange for a release from certain legal claims. Web site for that is here Payments to borrowers who lost their homes to foreclosure | NationalMortgageSettlement

The AG settlement included refi options but also a proprietary first lien modification eligibilty only for loans that are owned and serviced by WF. Have you spoken to anyone in the Office of Executive Complaints at World Fargo and asked if you can apply to be reviewed for a new mod under the AG Settlement? WF reps lower down the chain than the OEC don't seem able to discuss the settlement and give out the "all mod applications start with HAMP" line. However the OEC may be able to help. The number for the WF OEP is 1-800-853-8516. I was originally told "if you were eligible we would have contacted you" I kept reiterating that the WF consent judgement specifies that "owned and serviced" by WF loans are eligible to be considered. If you get nowhere I really think a letter to your AG will help. They have a direct line to the bank and someone from the bank will probably call you (that happened to us after AG letter).

Good Luck!

hfrances
 

hfrances

LoanSafe Member
Dec 4, 2012
48
0
6
just noticed that my link to the national mortgage settlement shows up as "Payments to borrowers who lost their homes. . " don't be put off by that - the settlement covered foreclusure compensation, refi and modification.
 

hfrances

LoanSafe Member
Dec 4, 2012
48
0
6
Hi Crystal - New judge has been appointed so the case number has changed - for some reason the plaintiffs declined to be heard in front of a magistrate judge and asked for a district judge. I have no idea what that means! New judge is the Honorable Susan Illston. New case number is:
[h=3]3:12-cv-06228-SI[/h]
 

Crystals Cave

LoanSafe Member
Oct 4, 2012
22
0
0
Thanks so much. I can't get a return call from Berns Weiss but will continue to fight as I pack up my bags. Been here 25 years. Thanks again for everything.

Crystal
 

hfrances

LoanSafe Member
Dec 4, 2012
48
0
6
Thanks so much. I can't get a return call from Berns Weiss but will continue to fight as I pack up my bags. Been here 25 years. Thanks again for everything.

Crystal
Hi Crystal - I am so sorry about your situation. Did you call your AG's office?
 

hfrances

LoanSafe Member
Dec 4, 2012
48
0
6
Hi Crystal - I am so sorry about your situation. Did you call your AG's office?
Crystal - do you think it would be worth asking your attorney to call Berns and Weiss? An attorney to attorney call might get more response. Berns Weiss have less than a month before the first case management conference with the new judge and I imagine they are working flat out. Just a thought.
 

Crystals Cave

LoanSafe Member
Oct 4, 2012
22
0
0
Crystal - do you think it would be worth asking your attorney to call Berns and Weiss?
I don't have an attorney representing us in the litigation. We simply can't afford one and don't qualify for legal aid. But maybe I don't need one with folks like you and God in my court!!!! You told me about the pending wachovia litigation over the pick a pay settlement. I used that as a basis for my objection to Wells Fargo Motion to "Motion to Enforce the Class Settlement and Strike Defendants’ Answer and Dismiss Counterclaims with Prejudice" and to my absolute amazement, the Judge denied their motion. Not sure what the next move will be. I do have an offer on a shortsale which I am considering although now I wonder if it is premature.

Before finding out I prevailed with Objection to their Motion, I talked with Wells attorney yesterday about a possible settlement with a waiver of deficiency judgment. WF said it if it prevailed with its Motion it would just proceed with foreclosure and if it didn't, it would revisit the idea of a settlement. I'm thinking a settlement might be worth a little more than the pick a pay settlement of $174.00.

Don't want to get to cocky but wondering if any litigation settlement or shortsale should include a relocation fee of $10,000 or so. What do you think?

REgards and thanks again.
Crystal

ps... what's happening with new class action?