What is the homestead exemption?

The homestead exemption is a legal protection available to homeowners in California. This legal protection protects a homeowner’s primary residence from certain creditors. It allows a homeowner to keep their home from being sold to settle a financial debt. This exemption applies to most debts, including credit card debt, medical bills, and lawsuits. The amount of the exemption can vary in California but is typically $75,000 for a single person, $100,000 for a married couple, or $175,000 for a homeowner who is disabled or age 65 or over. This means that your home cannot be taken from you and sold to settle a debt up to the specified amount. Any equity over the set amount is subject to creditor claims. The homestead exemption can also help homeowners who are facing foreclosure proceedings. It provides homeowners with an opportunity to try to save their home from foreclosure as it prevents creditors from taking possession of the property without a court order. However, it is important to note that this exemption does not protect homeowners who are very behind on their mortgage payments and are facing foreclosure. In conclusion, the homestead exemption is a legal protection available to homeowners in California that protects a certain amount of the value of their primary residence. It offers some protection from creditor claims and can help homeowners who are facing foreclosure. However, the amount of the exemption varies and does not protect a homeowner completely from foreclosure.

Related FAQs

What are the laws governing the leasing of real estate?
What is the difference between a lien and a mortgage?
What is a deed of reconveyance?
What is the statute of limitations for real estate disputes?
What is a zoning regulation?
What is a purchase agreement?
What is a quiet title action?
What are the laws governing environmental issues in real estate?
What is the role of a real estate agent in a real estate transaction?
What are the rights of a tenant if the property is in foreclosure?

What is the homestead exemption?

Related FAQs

Related Blog Posts