Query on Homestead filing
Question: Quick question for the net-gurus.specialty.real.estate:
How do you file a homestead notice on your house in California, and what does it protect you from?
Answer: How do you file a homestead notice on your house in California, and what does it protect you from?
I can’t tell you about California in particular, but the generic answer is:
Homestead declarations protect your house from being sold to pay your debts in case of bankruptcy.
They can be filed just before you file for bankruptcy.
There is apparently no advantage to filing them as a precaution, at least not in Massachusetts. And they apparently have no value except in the case of bankruptcy.
As always, the above may vary by jurisdiction, and I am not a lawyer, so you would be silly to take what I say as legal advice. the CA there is a $7500 exemption for your primary residence for tax purposes, so they basically, knock 7500 of the assesed value of your house. file this w/ the county assesor’s office… UM…..sorry.,…. you may have mis-understood the question….
THe home owner exepmption is in the range of about $ 50,000 to $ 75,000 depending on whether you’re single, married, blind, disabled etc…. That amount is exempt from attachment by other creditors and judgements. It does not exempt you from bank loans. Bottom line, you get to keep about $ 50,000 of your equity should you be sued and lose and get a judgement against you.
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