What can I do if I co-signed a mortage for my nephew and he has defaulted on the the payments?
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What can I do if I co-signed a mortage for my nephew and he has defaulted on the the payments?
My credit score is ruined because of his nonpayment. I heard home his home either has or soon will be in foreclosed on. Do I have any legal recourse? I never lived there nor had any thing to do with the property. Can I sue him to recover any law suits brought against me in this matter?
Asked on September 29, 2012 under Real Estate Law, Pennsylvania
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
You should consult with a real estate attorney about the matter that you have written about to make sure if the loan that you co-signed upon was a purchase money or a non-purchase money loan. If the loan was a purchase money loan then most likely under the laws of your state you will not be held responsible for any deficiency judgment in the event of a foreclosure of the security by the lender.
As to any legal recourse against your nephew, unless you advance any money for the loan out of pocket, you really have none under the laws of all states in this country.
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