Real Estate Law
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Can you tell me how brother is planning on taking out equity in the property?
Are you agreeing to allow him to borrow on the home?
Ok, thank you for that information. I wanted to make sure you knew that you had to agree to allow this and sign off on any loan agreeing to pledge the property as collateral for the additional loan.
But if you are ok with this, then you would just want to make sure that you didn't sign the Note or anything where you are agreeing to be personally liable for the debt. You will have to sign allowing the property to be used as collateral, but you don't want to sign anything where you agree to personally repay.
So if brother defaults, the worst that can happen is that they will foreclose on the property and come after him for the debt..