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Homesteads


NATURE AND AMOUNT

Homestead protects a portion of a debtor’s family home from creditors.

Two types Declared homestead Dwelling house homestead


NATURE AND AMOUNT

Purpose is to preserve the family by protecting them from a forced sale of their home.


Amount Family homestead for $100,000 Age 65 or disabled homestead up to

$175,000 Regular homestead covers up to $75,000


Equity Protection

Ninety Percent Limitation Selling Procedure Effect of Increase


Equity Protection

Creditors Protected Homestead Recorded First Judgment Recorded First


PRIORITIES

Recording Priority 1. Mechanic’s liens 2. Deeds of trust 3. Federal tax liens

Dwelling House Exemption


Effect

A homestead protects a debtor’s equity from creditors.


CREATION

Creation Requirements

Identity of Declarant Residency Stated Property Description Signed by the Declarant


CREATION

Creation Requirements Identity of Declarant

Residency Stated Property Description Signed by the Declarant


CREATION

Creation Requirements Identity of Declarant Residency Stated

Property Description Signed by the Declarant


CREATION

Creation Requirements Identity of Declarant Residency Stated Property Description

Signed by the Declarant


TERMINATION

Homesteads can be terminated only by prescribed methods.


TERMINATION

A formal declaration of abandonment, properly executed and recorded, will terminate the homestead.


TERMINATION

Alternatively, a homestead can be terminated by a homeowner recording a new homestead of a different property.


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