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Do I have any legal recourse in this situation?

I am buying a house and trying to get a mortgage through Wells Fargo (big mistake, I know). We already have $2,000 wrapped up in this process and were initially supposed to close 8/31/12 with a per diem of $100 after. Per the mortgage broker's advice, my real estate agent only requested a 2 week extension for closing that was approved by the seller; however, when we asked the mortgage broker if she thought we would be able to close on time, she said it would be a miracle if we close on time. We are supposed to close by 9/14/12 or we have to pay a $100 per diem and underwriting hasn't given us a clear to close yet. If closing is a couple of days after the drop dead date but if it's 2-3 weeks after I likely will not have enough extra money to close. If we go past the closing date that the mortgage broker told us to extend the original contract to and I end up having to pay hundreds or thousands of dollars in per diem fees do I have any recourse against the mortgage company?
  • September 03 2012 - Saint Augustine
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Answers (16)

Profile picture for wetdawgs
"When we asked the mortgage broker if she thought we would be able to close on time, she said it would be a miracle if we close on time"   scratching head in puzzlement - you didn't ask this question before scheduling a new closing date?

  • September 03 2012
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What is the hold up?
  • September 03 2012
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Profile picture for user917294
Apparently it keeps coming back from underwriting but we've sent everything they ask for as quickly as possible. And our real estate agent was assured by the mortgage broker that an additional 2 weeks would be enough time and then AFTER we sent the addendum to the seller and they agreed to it, the mortgage broker advised that she was simply trying to be optimistic and that it would be a miracle if we closed by the 14th.
  • September 03 2012
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Does the broker work for Wells Fargo or are they a broker?
  • September 03 2012
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Profile picture for user917294
The broker works for Wells Fargo.
  • September 03 2012
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All of the large banks (Wells, B of A, Chase) are requiring extra time to close loans due to more stringent lending requirements.  As far as legal recourse goes, I can't answer that question because I am not a lawyer.  I have had loan officers pay the per diem for buyers in the past since they did not close on time. 

Are you purchasing a foreclosure (REO) listing?  Who owns the home?
  • September 03 2012
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Profile picture for user917294
I believe it is or was a foreclosure; unfortunately i do not know the bank that's selling it I simply know that Re-Max is listing the property.
  • September 03 2012
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It is unlikely that Wells Fargo agreed to any per diem clause. Why would they be responsible legally?
  • September 03 2012
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What is the name of the owner on the purchase contract?
  • September 03 2012
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Profile picture for user917294
Wells Fargo didn't agree to a per diem, they are simply financing the mortgage; however, their mortgage broker was the individual who recommended to my real estate agent to only push back the closing because she was "optimistic" they could get the clear to close in less than 2 weeks, but when I asked the mortgage broker if her timeframe was realistic her exact words were "it will be a miracle if it closes by the 14th" and if doesn't then I will be responsible for paying an extra $100 per day, which doesn't seem very fair to me since I had no input on the decision.
  • September 03 2012
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If it is a Wells Fargo foreclosure, they may give you a little bit of room if you are financing the purchase with a Wells Fargo loan officer.

I list REO properties and the asset managers usually do not charge a per diem for the first extension.  They will charge for the second extension.  Your loan officer should go the right thing and pay the per diem for you. 
  • September 03 2012
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Profile picture for wetdawgs
"I had no input on the decision."   You didn't sign any papers agreeing to the decision?
  • September 03 2012
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Profile picture for BrutallyHonest
What is the issue? You still have 10 days to get the loan closed. A clean loan could be originated and closed in 10 days. What is the real issue?
  • September 03 2012
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Profile picture for user917294
The issue is Wells Fargo keeps jerking me around asking me for paperwork that I have already sent in multiple times and causing me to ask for multiple extensions to close on the loan. My mortgage broker had a family emergency (death in the family) and has been difficult to get a hold of and I have tried calling and leaving message well over 50 times for the underwriter and have only spoken to him once. As soon as I am able to to go another mortgage company I will and I am going to contact a real estate lawyer about any legal actions I can take on Wells Fargo's piss poor excuse of customer service and loan servicing. I wouldn't recommend them to my worst enemy whom I would want to go bankrupt. It's September 17th and I'm not any closer to closing than I was nearly 3 months ago when i sent in my initial good faith deposit to the seller. Can someone give me some reasonable advice? I am already $2,000 into this with none of it recoverable and have wasted copious amounts of time and frustration with attempting to get the clear to close on this mortgage. I'm not rich but I'm also not stupid and I will file a lawsuit against them if necessary. This is ridiculous.
  • September 17 2012
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Another reason I suggest to buyers using Wells Fargo that they might want to get a back up plan.
  • September 17 2012
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Profile picture for user917294
My contract was signed July 13th. It is now October 9th and I still have not received a clear to close. They keep telling me that everything looks good and they are waiting on underwriting to give the clear to close. I have received FOUR extensions from the seller and am currently paying a per diem of $100 that started this past Saturday. Is there anything at all I can do? Angry does not begin to describe how I feel about this company. If it were not already so far into the process I would have used another lender.
  • October 09 2012
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