What to do if I signed a loan for my brother but it was put into foreclosure 3 years ago and now I’ve received a court summons for the balance?
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What to do if I signed a loan for my brother but it was put into foreclosure 3 years ago and now I’ve received a court summons for the balance?
I never lived on the property. My brother now owns a different property.
Asked on December 12, 2012 under Real Estate Law, Virginia
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
If you signed the loan, you are as obligated for it as your brother. When a property is foreclosed upon, if it's worth less than the remaining balance on the loan, the lender may sue for the difference. They could sue a co-signer instead of or in addition to the property owner. So the lender can take legal action against you; you in turn may have grounds to sue your brother to recover the money from him, since he has breached his obligations by not paying.
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