What is a homestead exemption?

A homestead exemption is a legal provision in North Carolina that protects a homeowner from certain types of creditors who try to take possession of their home. Under this law, a homeowner’s primary residence is exempt from certain specific types of creditors’ claims, up to a certain dollar amount. This means that a creditor cannot forcibly take possession of a home in order to satisfy a debt owed by the homeowner up to the dollar amount of the exemption. In North Carolina, the homestead exemption is currently set at $35,000 per individual and $60,000 for a married couple. This means that if a homeowner owes a creditor, that amount may not exceed the amount of the homestead exemption, and the creditor is unable to take possession of the home. Any amount owed that exceeds the homestead exemption limit must be paid in order for the homeowner to avoid potential legal action. It is important to note that the homestead exemption is intended only to protect a homeowner’s primary residence. It does not extend to other properties such as vacation homes or rental properties, and it does not protect the homeowner from certain types of creditors, such as federal and state tax authorities. Additionally, this law does not protect against mortgage lenders who have a lien on the home, as they have a legal right to the property.

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