Can we sue Wells Fargo?

Asked over 4 years ago - San Diego, CA

We need to close our escrow on 04/15/2010. Wells Fargo loan officers told us no problem on our loan and closing date many times. We got loan commitment letter from Wells Fargo. We submitted all their required document last week and plan to close our escrow on time. Then out of blue, today the loan officer called and asked us to put $160,000 (47%) down payment instead of $85,000 (25%) down payment. Our financial situation has not changed at all since this loan application. We will lose our $5000 earnest money, inspection fees and appraisal fee. We also have been given 30 days move out notice to our landlord and need to be move out by end of this month. We are very angry, upset and hopeless now. Can we sue Wells Fargo?

Attorney answers (1)

  1. Nicholas Donovan Heimlich

    Contributor Level 12

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    Lawyer agrees

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    Answered . Difficult situation. Unfortunately, delays in financing are all too common. Here are some things you may be able to do. If you still want to close the loan on the new terms, then I would proceed. If you don't like the terms, then you should have a financing contingency in your real estate contract which will let you get out without a penalty. The penalty or $5,000 should be only if you decide not to proceed. With respect to the landlord if you need more time, try to revoke the notice and move out later. In the future, never give notice until you have the keys to a new place. I would not advise suing Wells Fargo, suing for $5,000 is hardly worth it. Plus, what about a different lender. Also try negotiating a return of your deposit. Talk to your realtor.

    Please note that this answer is not legal advice, and should not be relied upon. Each state has different state laws and procedures. A review of all documents and a consultation at a minimum is necessary to render effective legal advice. This answer does not create an attorney client relationship. Consult an attorney before you decide on a course of action.

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