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?

Get Legal Help Today

 Secured with SHA-256 Encryption

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 8 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.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption