Homeowner Files Suit Against Wachovia, World Savings For Deceptive "Option ARMs"; Seeks Class Action Status

The San Francisco Business Times reports:

• A lawsuit filed against Wachovia Corp.'s mortgage unit and World Savings Bank in Oakland alleges the bank was less than honest in explaining its option-adjustable-rate mortgages to consumers, according to the Charlotte Business Journal. That "campaign of deceptive conduct and concealment" led customers to lose their homes through foreclosure, contends the suit, which seeks class-action status. It was filed Aug. 30 in federal court in San Jose.

[...]

• The suit claims the bank did not disclose the actual interest rate on its loans, which were often raised "immediately and significantly" after closing. It also says if borrowers made payments at the teaser rate, the principal on the loan would actually increase, which is called negative amortization.

For more, see Wachovia sued over option-ARM mortgages. For a copy of the lawsuit, either:

• Drop me a line at HomeEquityTheft@yahoo.com (please put "Mandrigues v. World Savings, Inc." in the "Subject" line) and I'll e-mail it to you, or
• Go here for a direct link to the lawsuit (39 pages - $2.40); on the U.S. Courts' PACER website. PACER registration required.

For another lawsuit, filed in a Charleston, South Carolina Federal Court, involving "Option ARMs," see World Savings, Wachovia Sued Again For TILA Violations; Class Action Status Sought.

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For links to media stories of other refinancing homeowners who lost equity in their homes and found themselves in or near foreclosure as a result of these or other types of exotic mortgages, see Subprime Refinancing Leaving Some Homeowners Financially Strapped.

Go here for other posts on homeowners suing lenders to undo subprime / predatory loans. undo mortgage loans TILA alpha