Lender is under contract, but is refusing to perform, causing problems

[Dustin Long]

I contracted with a private lender who also has is licensed mortgage broker. He is refusing to live up to his end and provide the financing, which has made my payoff for the refinance to jump from $118,000 to over $132,000. He told me I must have "mental issues" for "allowing" the foreclosure he was going to pay off to go on "too long" after 2 months. He was going to provide $130,000, secured against $266,000 (54.4% LTV) at 10%, and my current default rate is 16%. I was moving 2nd's of the two properties to three others that I own, making 5 properties and 4 different sets of attorneys involved. He's also accepted a $1,300 deposit (1 point prepaid) which he refuses to return to me.

At this point his $130,000 won't even satisify the payoff, and I've incurred $14,000 in additional interest and attorney fees. Is there a way I can compel him to perform on the contract or get damages from him? Any help would be appreciated.