Do I need to Homestead my property?

CFPB

In a distressed housing market, it is natural for homeowners to question the security of their homeownership. Attached is an informative piece on how a homestead declaration operates in the state of California.It is important to remember that a homestead provision offers homeowners only limited protection from a forced sale to satisfy certain debts.  As always, we kindly recommended you direct all legal/debt questions to the proper professional.

Do I Need to Homestead My Property?

What is a homestead?

A Homestead is a special provision in California to allow homeowners to protect their property from forced sale to satisfy their debts within certain limits. It does not protect the homeowner against trust deeds, mechanics liens or prior-to-filing liens. The Declaration of Homestead is the form that must be acknowledged and recorded to protect the resident.

What property does it cover?

  1. House and adjoining property
  2. Condominiums and town homes
  3. Farms
  4. Life Estates

You may have only one homestead at a time.

How much does it protect me for?

  1. Head of households $75,000
  2. Persons who are mentally or physically disabled, or those who are over the age of 65 $100,000
  3. Any resident who does not qualify for one of the above $50,000

Are there any requirements to be met to make the homestead valid?

  1. A statement showing the claimant is the head of the family and stating the name of the spouse
  2. A statement showing that the claimant is residing on the property and claims it as his or her homestead
  3. A description of the premises and an estimate of cash value
  4. The declaration of homestead may need to contain a statement as to the character of the property, and that no former declaration has been made.

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