Homestead

In order to protect the home where you reside, also called your principal residence, from the people to whom you owe money, or the creditors, you will require to record a homestead form with the court.

This type of exemption is the supreme of all exemptions in California. This is so because, unlike other exemptions, which protect only a few hundred or a thousand dollars, homestead protection covers from $50,000 to $150,000 depending on the individual situation. If you are the only occupant of the home, the homestead protects $75,000, in case of a couple, the homestead extends up to $100,000 and in case of an elderly of 60 to 65 years, it extends up to $150,000.

Few things to know about the Homestead

Homestead Orange County(A) Homestead is superior to a judgment creditor

Although not from every kind of creditors, a homestead can protect you as a homeowner from the judgment creditor. In case of a lawsuit filed against you, where you owe the plaintiff a certain amount of money, a judgment may result out. This judgment entitles the judgment creditor certain legal powers that help him to get back his money from you. But, a homestead right overpowers all the legal rights in such a case and the rights to collect money from you are limited.

(B) No protection from foreclosure

According to the state law of California, you can take a loan by pledging your homestead as collateral. When you mortgage your home as a part of the purchase transaction, the lender gets the right to foreclosure on your home, disregarding your homestead.

(C) Either spouse can claim the entire exemption

In case, if a couple is entitled to a homestead, and the debt is due on only one of them, then the spouse who is in debt can assert the entire homestead.

How can we help you?

Help4You is a leading document preparation service in Orange County, California that can assist you in preparing the necessary documents required for a Homestead protection. We are a team of experienced paralegals to help you with all the required paperwork and file it with the County Recorder.

You will need a Property Grant Deed as an important document for homestead. Don’t worry if you don’t have it, or have it misplaced, we can help you draft it for $20.

Call us today! (714) 847 6232

Disclosure: We are not attorneys. We can only provide self-help services at your specific direction. Help4You Documents Services are owned / operated by legal document assistant, who are not lawyers, cannot represent customers, select legal forms or give advice on rights or laws. Services are provided at customers request and are not a substitute for advice of a lawyer. Prices do not include court costs.
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