10/19/2017

MoneyMatters101.com Home
Real Estate Information

20 Real Estate Terms
1031 Tax Exchange
A Home
An Appraisal
Are Homes To Big?
Attention Veterans!
Avoid Fraud
Best Investment
Buying A Home
Buying REOs
Buying Real Estate
Can You Qualify?
Cash vs Home Loan
Clear Title
Climate Change
Closing Costs
Disclosing Material Facts
Distressed Property
Drug Houses
Down Payments
Escrow Information
Escrow Terms
Get Pre-Approved
Fair Housing
First Time Buyer
Foreclosure Guide
Foreclosure Scams
Homesteads
Home Prices
Home Warranties
Home Worth
Housing Statistics
Increase Sale Value
Intentional Default
Interest Rates
Is Now The Time?
Loan Modification
Look For A Bargain
Making An Offer
Market Analysis
Mineral Rights
Overvalued Property
PreForeclosure
Preparing To Sale
Preparing To Buy
Pricing Your Home
Probate Properties
Property Appraiser
REIT
Real Estate
Real Estate Scams
Rental Profits
Resources
Revive Market
Security Systems
Sellers Guide
Sell First?
Selling Real Estate
Short Sale I
Short Sale II
Short Sale III
Single Households
Smart-Home Technology
State Agencies
The Housing Crisis I
The Housing Crisis II
You Flinch, You Lose

Links

Email Us

Homeowner
Property

Short Sales

Quotes

MoneyMatters101



 

HOMESTEADS
by John M. Roberts

What is a homestead? 

A homestead is a statutory exemption that protects homeowners against the rights of creditors.  In simpler terms, it is a security device that hinders most creditors from attaching the equity or forcing the sale of a home if it is an individuals principle place of residence. 

There are some limitations and exceptions, but in theory, the homestead provides a barrier of security against liens and or judgments filed against a person, if the lien is placed against his home, to collect a debt.

If the house, condominium, duplex, or mobile home is the primary place of residence, a Declaration of Homestead can be filed at any time.

Marital status

Marital status does effect the homestead. If an individual owns the home prior to getting married and the spouse goes on title to the property, a new homestead should be filed showing both spouses as homesteaders. If there is a divorce and one of the spouses become sole owner of the home, that individual should file a homestead in his name only. This also applies if one of the spouses dies.   

A homestead will remain in effect until the home is sold or an Abandonment of Homestead is recorded. If a home or mobile home is moved from one lot to another, it loses it's homestead status and a new Declaration of Homestead needs to be recorded.

Loans or liens

Loans secured by deeds, trusts, or other devices of security, are not covered by the homestead exemption. Tax liens issued by state, federal or local government entities also supercede the exemption.

If a lien is recorded against the home prior to the homestead being recorded, the lien remains against the property and the exemption may not protect the property from the creditor. 

Also, when a homeowner voluntarily puts his property up as security for repairs or improvements and the bill is not paid, the homeowner remains responsible for the debt and the homestead offers no security.

Homesteads and homestead filings vary from state to state and may even vary from county to county within a state.

Declaration of Homestead forms may be obtained from local stationary stores, realtors, and attorneys. They have to be filled out correctly, signed, notarized and filed with the county recorder in the county that the property is located.

Note: This is intended for general information so contact an attorney for legal advice.

About The Author

This information is provided by John M. Roberts, Broker/Owner of John Roberts Realty located in Rancho Belago, California. He can be contacted at jrobertsrealty@yahoo.com

Book of the Month

Book about investing

Advertise on MoneyMatters101.com

Ask a Real Estate Lawyer Online

We have partnered with JustAnswer so that you can get an answer ASAP.

JustAnswer

Share





Accessibility Policy| Terms Of Use| Privacy Policy| Advertise with Us| Contact Us

Use of this web site constitutes acceptance of the Terms of Use.

We are looking to create more mutually beneficial partnerships. If you are interested in partnering with MoneyMatters101.com, send us your proposal.

MoneyMatters101.com™

Link to MoneyMatters101.com