What Does Homestaed Actually Mean To The Purchaser?
I've read a number of posts discussing homestead exemptions. I am in FL & have been interested in tax deed (not lien) purchases. If the owner has homestead exemption, what does that mean to me as the potential deed purchaser?
In Florida, homestead properties up for tax deed auction will typically have "HX" or somesuch appended to their docket numbers (2003-637HX rather than 2003-637), and the bidding will start at 50% of the assessed value (which is typically 80% of fair market value), so figure 40% of fair market value for the opening bid, rather than the simply amount of the arrearage, interest, expenses etc.
The policy of the law is to prevent people who are living in their own homes from having the property "stolen" such that they get only a tiny pittance or nothing at all.
Tax liens are superior to every RE right & interest (except prior recorded mortgages), so I suspect the FL Hstd exemption gives the owner NO protection against losing his house to tax auction.
Homestead expemptions are generally designed to protect the home owner against creditors such as Judgment holders, those Js arising from new debts such as liability suits, consumer debt, etc...but NOT contractual obligations such as mortgages, and not tax obligations to state, fed, etc..