If I co-signed on my son’s mortgage and he is now in foreclosure,canI be sued?

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If I co-signed on my son’s mortgage and he is now in foreclosure,canI be sued?

What are the implications for my credit?

Asked on November 21, 2011 under Real Estate Law, Illinois

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

If you co-signed on your son's loan for his home and the property is now in foreclosure, your own personal credit report will end up taking a negative reference in your credit report.

As to whether or not you and your son can be sued by the lender for any deficiency depends upon whether or not the loan is a "purchase money" loan used to acquire the property and if your state has anti-deficiency legislation. If so, then neither you nor your son will be able to be sued successfully for any deficiency on the loan by the lender. I suggest that you consult with a real estate attorney further to assist you in this matter.


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