WELLS FARGO SHORT SALE PROBLEMS

"Hi Kelly, I am a first time homebuyer using a Town Of Babylon XXK down payment assistance grant to purchase a shortsale from Wells Fargo. To make a long story short I started the process and about 3 weeks ago the short sale was approved. I was told by all parties involved that the short sale bank (Wells Fargo) was sending the official paper work to the attorney and from there we could schedule a closing date. several days later I learned that the short sale bank closed my file. They admitted to sending the paper work via email but had sent it to the wrong address. Since the short sale bank did not hear back (just X days??and without an old fashion phone call ???) they closed my file. My grant is about to expire my rates are going to go up because i had several extensions already with my bank and I now have to start all over. I am going to loose all that i have invested. I need help. Please let me know what i need to do. I am desparate and about to loose my grant. I can be reached via email or by phone. Cell: 516-XXX-XXXX work: 516-XXX-XXXX. Can i sue the bank for neglegence and for the loss of my 20K grant? I was approved!!! And because of their neglegence I have to pay the price? This doesnt sit well with me and i need all the help i can get. Off the record, the short sale owner is allowing me to rent the house under the noses of his bank. If i loose this house, we have no where to live. I have kids who are accoustmed to the house who have recently lost their mother to cancer, I cannot loose this house. It will be detrimental to all. Please help me. I had my bank contact the Wells Fargo people who had listed. They claim they cant help me due to privacy law. What else can i do? Thank you, L. M. North Babylon NY
The person who posted this message left a return email address of lmeyer@goevo.com ."