I beleive so as this would cover the admin cost to prepare the discharge documents and confirm that the file is indeed paid up.

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I went to a mortgage a few years back and through them i obtain a pre-approved loan. i sent them everything they asked for to do the prepapproval except my tax returns in which i did not have at the time. i ask was this a problem and did they need them before they preapprove me and they said no. i took the preapproval and them went out and put home under contract and they assured me that it wouldn't take long to finalize the approval once they received my tax returns in which i finally sent them. once they received them they denied me immediately due to the fact that my tax person had itemized to many items on my taxes and brought my income down. i understood and they said that because of the new guidelines they had to take that in to consideration. so i ask was they anything that i could do being that i had already put up earnest money and gotten a home inspection done. he said that if i could get a cosignor that made at least a thousand dollars a month and put three thousand dollars down that he could work the loan. so i already had the money, i went and got a cosignor. my original closing date was for 06/11/10 he said that he would need an extra week. so we ask for an extension and got it for 06/18/10. he said he may have got it done by the 14th but by the 18th for sure. on the 14th he called and emailed and said the he needed three more weeks and he had also basically talked my cosignor out of signing for me. by telling him things that he had not told me. now i know it is not the lenders fault that my taxes were the way they were. but i think that all of this could have been avoided if he had just made sure that i had given him my tax returns before giving me a preapproval. i mean being that this was such an important factor in me getting the loan. it would have save me a lot of time and money. also i was trying to get the tax credit and there would have been more time for me to take other options if he had only taken the the time to look at my tax returns which they do ask for initially but they made it seem like they would not play a signicant role. so i was wondering could i sue him and his company for a there poor service which cause me alot of time, money and undue stress. i wouldn't have took them two minutes to look and the taxes and made that decision. i could have either gotten my taxes ammended, went to another bank or tried seomthing else.

No You cannot sue a bank for declining a mortgage to you Sounds like you are self employed. Also sounds like when you went in for the pre approval, you quoted them your *gross* earnings before the deductions you take on your return. This is not what lenders use. When you are a contractor or self employed, they take what you net AFTER deductions. That is why a self employed person will be advised to take less deductions for 2 years in order to have a better chance of qualifying for a home loan. The problem you will run into is that there will be the small print that said their *pre approval* was NOT a promise to lend you money. That the pre approval was only going on the preliminary things that you gave them as proof of income/employment etc. As for talking your cosigner out of cosigning, not sure how you would prove that? What exactly did they do to talk them out of it? Did they speak to them personally and say, "Do not cosign for him, he is a high risk"? Or, did your cosigner drop out because the process was taking too long? If it is because of the delays, there isn't much you can do. I would suggest not taking so many deductions for 2 years, save up a down payment and then you won't have this issue when you go for a home loan again. You will also know to bring in your tax returns when you go for the pre approval instead of thinking because they say yes based on your assessments, that you are good to go.