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I Have a HELOC Loan Against My Brothers House. I Can’t Make Payments. – Junior

“Hi Steve,

Last year I started the process to buy a house with my domestic partner but 4 days before the closing in nov. 2008 I lost my second job since then I been trying to find a second job (part-time/full time) without look, since then I have add about $20,000 in debt. but I also have a HELO for $60,000 on my brothers property which I’m also co-applicant. I stop making payments on everything a few months ago. I’m about to go in foreclose for the house the I bought in nov. but my mayor problem is my brothers house, that because I stop making payments he could lost his house.

Is any way that I can avoid that?



I had the following questions that I’d like for you to answer before I can answer your question. Please post your answers in the comments section of your question. I’m looking forward to helping you for free.

  1. Do you have any money coming to that you can use towards the home equity line of credit (HELOC) payments on the loan against your brother’s house?
  2. Can your brother cover all the payments on his house including the HELOC loan?

As soon as you can post the answers to my questions above I’ll be able to help.

If any reader wants to offer advice in the comments section please feel free to participate.


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

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About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.


  • Thank you Steve, I went there but could no see the manager, I spoke with a rep from the collection department, what they told me is that they can’t do any arrangement because is a HELOC they only do on mortgage. They also told me that I should keep it under the 60 days delinquent which I do until I can start receiving more income.
    Regarding the rest of my debt which is about 20,000 in credit cards, a mortgage what could I do?
    If I declare my selft in bankruptcy will this afect other people because I’m a cosigner for my brother’s house and my fiance auto loan.

    • Junior,

      You know, there is a chance that you could go bankrupt but you’d have to coordinate it with a local bankruptcy attorney and discussions with the HELOC lender on your brother’s house.

      The situation is complicated, but not necessarily impossible to work out with bankruptcy.

      Find a local bankruptcy attorney you like, make an appointment and go sit down with them face-to-face and talk through the situation.


  • Hi Steve, for the moment I don’t have any money that I could use to pay for the HELOC. 2. My brother also has his own debt problems and the money that he made is to cover the house and utility bills. I have call the credit union on which I have the HELOC but the people there can give me i’m answer they don’t know if I could do an arrangement on the payments until I get back on track and told me to call the manager for collection but he never gets the phone and I have left several mesages but never calls back.
    I have been looking for a second job but still not luck; also I put an apartment that my house has for rent to see if that could help.

    • Junior,

      Rather than leaping way ahead to conclusions, let’s get some straight answers from the collection manager at the credit union.

      I want you to schedule a face-to-face meeting with him and go in and see what is possible. Be proactive and show a willingness and intent to address the situation.

      Give me an update once you have that meeting and based on what happens, I’ll give you the next steps to follow.

      Sound reasonable?


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