Wells Fargo scam?

Wells Fargo charged me for an appraisal, but then didn't refinance my mortgage. Am I entitled to a refund of the appraisal fee?

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Bill's Answer: Bills.com Resident Expert

It is not illegal to collect funds up-front for an appraisal. In fact, in the industry it is standard operating procedure to do so, so it sure doesn't sound like a scam run by Wells Fargo.

It is impossible to guarantee a loan will fund before an appraisal is complete. For example, the buyer and seller may agree to a price that is wildly above the market price. Or, the appraisal process may uncover defects in the title that have an impact on the sales price.

If the borrower does not have something in writing that states he or she is due a refund of the appraisal fee should the loan not go through, he or she has no real recourse.

However, I recommend you call Wells Fargo Customer Service and try to convince them that a refund is a small price to pay to assure that you will consider patronizing Wells Fargo in the future. I am not optimistic, however, that you will be successful, but it never hurts to try.

By law, you are entitled to a copy of the appraisal report.

I hope this information helps you Find. Learn & Save.

Best,

Bill

Bills.com

Comments (2)


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Bills.com
May 11, 2010
Generally speaking, no, the appraisal fee and other closing costs associated with a home sale or purchase are not tax deductible. However, the points you paid for a mortgage may be deductible. See the IRS document Topic 504 - Home Mortgage Points to learn more about what is and is not tax-deductible in the buying and selling of a home.
Wendy .
May 11, 2010
Is the appraisal fee tax deductible?
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