Why & How to File a Homestead Declaration

Whether or not you are experiencing financial difficulty and/or worried you may be in danger of losing your home to creditors (other than your lender), the filing of a HOMESTEAD DECLARATION is the single most important thing you can do to protect your home. Think of it as you would an insurance policy. It’s something you hope you never need to use; but if financial problems hit you sometime in the future, you have this safeguard in place.

Recording a Declaration of Homestead on your title will insure your equity is protected from creditors. Depending on your individual circumstances, the dollar amount protection goes from $75,000 to $175,000.  

Qualifications for declaring aHomesteadare as follows:   

 

1. The residence must be your principal dwelling.  

2.  You must reside at the dwelling on the date the judgment creditor’s lien

     attached.

3. You must reside continuously thereafter until the date of the court

     determination that the dwelling is a homestead.

Once a Homestead Declaration is in place & you have met the above requirements, creditors cannot force the sale of your home to collect a debt unless your equity exceeds the amount of your exemption. In this case, a creditor could force the sale of your home; but, the dollar amount of the protection you’ve been granted ($75K to $175K) from the Homesteadwill “NOT” be subject to what the creditor can take. So again, if your equity is less than your homestead exemption, you are completely “FREE” from a forced sale of your home to satisfy a judgment creditor.  

FILE for FREE!  Most often you will receive “Homestead Declaration” advertisements after you close escrow. Their fees are generally $25.00 or more. Instead of taking this route, you can easily find the form online, download it, fill it out, get it notarized & send it to your county recorder for a very nominal fee ($5.00). 

None of us know what the future holds. A Homestead Declaration is an “Absolute Must” no homeowner should be without.  Next BLOG: 1-30-13

Profile photo of Charles About Charles

Charles Sant’Angelo is a broker of 20 years with offices in the same Beverly Hills location. He has represented residential & commercial buyers & sellers in LA, Orange, Riverside & San Bernadino counties and as far away as Costa Rica. Whether you are a local or global 1st time buyer , a seasoned home buyer/seller or an investor, you will find that his professionalism & his ‘Customer First’ approach is the cornerstone to how he conducts business. Please visit our “About Us” page for more information or contact Charles direct at chas90210@gmail.com
-Thank You-

  1. Thank you very much for your feedback. Enjoy your day. Charlie

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