Homesteading your personal Belongings.
jfmlv1950 and Consultant was talking about homesteading a certain value of your house. How would a creditor forclose on a property that has a portion of that home wrapped up into a recorded homestead?
that is just it, the homesteading is to protect your personal residence from the creditors. There is a legal way for this to happen, that doesn't cost much money. Like a couple of hundred dollars. Cheap insurance when you comapre it to living on the street b/c you couldn't pay your Sears credit card bill.
The creditor it's self may not come and take your home. But unpaid debt goes to a collection agency. That agency can sue you for the amount. If it were to goto court, and you would loose, the judge could order the sale of your home to satisfy the debt that you owe.
It might be a good idea for a licenced lawyer to give a specific procedure for how this would happen.
Here is a definition of Homesteading: Law. Property designated by a householder as the householder's home and protected by law from forced sale to meet debts. Link
I am sure that it might be different in other states, but here is a link to California = Homesteading
I hope that this helps to clear up a few things. If you have more questions, please let me know. <IMG SRC="images/forum/smilies/icon_biggrin.gif">
[ Edited by Consultant on Date 03/09/2002 ][ Edited by Consultant on Date 03/09/2002 ]
I don't know what the procedure is in other states, but here in Nevada it is only a matter of recording a Homestead Declaration form which can be purchased for a buck and recorded for $15.00
Cheapest protection ever.
John
Does this include personal belongings, ex car, boat etc.. or does it just include a part of your home equity??
Real property only, that is you personal residence. Also once you move to a new house, that residence must be homesteaded. It does not automatically follow when you move.
John