Homestead Protection II

Homestead Protection II

Who needs a declared homestead?
If you’ve been sued in court, lost, and have a large money judgment against you, a declared homestead can help. If you sell your home, it protects some of the proceeds for six months. This gives you time to buy another home and record another declared homestead.

How much does a homestead protect?

Both automatic and declared homesteads protect the same amounts:

· $50,000 for an individual;
· $75,000 if the homeowner lives with at least one family member who has no interest in the house;
· $150,000 if the homeowner is 65 years of age or older, or is physically or mentally disabled;
· $150,000 if the homeowner is 55 years of age or older and single with an annual income of $15,000 or less;
· $150,000 for a married couple with a combined annual income of $20,000 or less;

A homestead does not protect you against:

· Foreclosure of your home by mortgage lender if you are behind on payments.
· The enforcement of a mechanic’s lien;
· A judgment for child or spousal support.