What to do if we are being sued over a used car sale?

From what you have written, it is hard to give you an opinion as to what to do concerning the car that your family sold to the person who is now suing for a refund of the price paid of $20,000 for the vehicle. Under the laws of all states in this country, the seller of an item is required to disclose all items that would impact the price paid by a willing buyer or impact the desire of a willing buyer to acquire the item. Failure to disclose such material items would be concealment warranting the cancellation of the purchase contract.

The apparent basis for the lawsuit is that the vehicle does not look like the photographs does not seem to be a proper basis for the lawsuit assuming the photographs seen before the purchase were not of the car that was purchased.

I suggest that your family defend itself by filing an answer to the lawsuit in a timely manner. I also suggest consulting with an attorney that practices contracts law might be a good idea.