Can I sue a consumer for breach of contract for canceling out on a mortgage loan at signing?

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Can I sue a consumer for breach of contract for canceling out on a mortgage loan at signing?

I want to go to small claims court to sue a consumer for lost commissions and fees on a loan that I had made for the borrower and he canceled at signing due to his not liking fees which he new about and consented to move forward with the loan. We were able to accommodate the borrower and credit back fees to offset a lock fee and I personally paid $200 out of my own pocket to help out.

We then re-drew docs and borrower once again didn’t like the fees after we had

agreed to waive 1200 and sent new docs to title company.

He once again complained and felt he needed an extra 500 to cover a MCC tax

cert that has nothing to do with this loan closing and has to do with this

borrower doing it out side of closing.

He signed all disclosures initiating the loan and signed all re-disclosures

accepting new fees for lock extensions.

We need to be able to hold people accountable for their actions. I was hired

to provide a loan which I did as well as put the borrower in a better position

and he canceled for no good reason.

Asked on August 16, 2016 under Business Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

You have no basis for suing the consumer for cancelling the mortgage loan: that was his legal right to do so, even if the decision was unwise or inexplicable. People are not liable (that is, may not be sued over) actions which they are legally entitled to do, even if those actions have negative consequences for a vendor, sales rep, etc. If you are out of pocket, that is not legally the customer's problem: it is a function of the fact that when you are a business person, you often have to invest in or spend money on potential sales that do not come to fruition; that is the cost of being in business.


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