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


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 7 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.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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