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In order to protect a homeowner’s equity from creditors, property taxes and other situations that may arise from the death of his/her spouse, homestead exemptions were put forth. All state statutes that allow homestead exemptions have homestead laws. Given below are some of the important questions that have been asked by different people about the Homestead Act: How will filing a homestead exemption be beneficial for a homeowner?
There are two kinds of homestead protections – homestead exemption and declared homestead. A homestead exemption will become automatic if a person owns a home with a lien attached to it and lives there till the date that is decided by the court to declare the property a homestead. The exemption will also protect up to $75,000 in equity for a single owner if he/she is less than 65 years of age. The protection can be between $100,000 and $175,000 depending on the person’s age, income, disability, etc. When a person declares basic facts about his/her home, it is called a declared homestead. The facts could include a legal description of the property before a judgment is recorded against it. The individual will get $75,000 in equity protection if he/she declares a homestead. He/she may also be able to sell the property if he/she reinvests the money into another house within a period of 6 months. The homestead will protect up to $75,000 in equity even if there is a foreclosure. However, the protection will be only for a period of 6 months. The rights of the homestead exemption will be passed onto the heir of the property owner on his/her death. Is a person required to pay off unsecured debts, credit cards and medical bills before selling a property according to the Arizona Homestead Act?
A homeowner may be permitted to protect up to $150,000 in equity from any liens according to the Arizona Homestead Act. Since the homestead exemption would be automatic, the person may not have to do anything to become eligible for it. However, the person may be required to file a motion to set aside any judgments that may hamper the exemption. He/she may have to prove that he/she was residing on the property when the judgments were attached to it and continues to reside there. Will an individual have to pay tax on the Homestead Act if he/she sells his/her home in North Province, RI?
North Province has a property tax which would be is $16.75 per thousand of the assessed value of the property. If there is a homestead exemption, then the person may get a 20% discount on the total tax on the property. In order to get the discount, the seller of the property will have to mention the sale of the property while filing his/her taxes. A part of the taxes will then be transferred to the buyer. Will the property owners in the state of Maine be protected from forced sales by creditors by the Homestead Act like in the state of Florida?
Though the state of Maine has homestead exemption laws, they are not flexible or unlimited like those of Florida. A person may have up to $47,000 in equity protection over the mortgage amount, $95,000 if he/she has minor dependants and $95,000 if the person who owes the debt is over 60 years old or is physically or mentally disabled in Maine. The proceeds of the sale of the property would be exempt for a period of 6 months. However, if the equity is more than these amounts, then the remainder would not be exempt. Homestead Act may be found in most parts of the US. These provide protection to the homeowners like homestead exemption. You may ask a lawyer if you need more information about the Homestead Act in your respective states.
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