Questions Related to Homestead Act

Under this Act, is it possible to seek protection against the credit card creditors in the state of Nevada?
Under the home protection law in Nevada, a homeowner should be offered a protection up to five hundred and fifty thousand dollars as far as the equity in a residence is concerned. However, if a deed of trust or mortgage (including seconds) has already been recorded before the home protection was claimed the law would not be able to safeguard the owners of the house. Moreover, in a case like this, you would need to file a Declaration form with the county’s recorder’s office and record that declaration as per Nevada law NRS 115. Besides, you must keep this in mind that according to the rules of the Nevada Supreme Court that is laid down in ‘In re: Contrevo’, no liens or judgment can be filed against those properties in Nevada that are already protected under this act.

Since the house protection act can protect only five hundred thousand dollars of my equity in the residence, I would like to know what would happen if the bank forecloses on my primary home that has a mortgage of eight hundred thousand dollars. I have filed a protection on my primary house.
In this case, since you have a mortgage on your primary house, your lender has a lien on your home. Thus, in a case like this, it is not possible for you to safeguard your house from foreclosure even if you apply for a home protection exemption. However, if you want to protect your property or home from being seized by the creditors, then you can definitely file an exemption. Therefore, in a situation like this, the lender should only foreclose the property if you are unable to pay off your mortgage loan on time.

If the owner sells his home and then backs out of the deal, then can he or she save the house from being taken away by another person under the Home Protection Act?
Usually, if a contract of sale has been signed between the owner and the buyer, then the owner cannot avoid the terms and conditions of that contract. This is because the contract is made valid as both parties concerned have given their consent by signing on it. Therefore, in this kind of a scenario, even if the owner tries to apply for a house protection exemption by filing a protection act, he or she would not be able to save it from being sold. The owner needs to abide by the rules of the contract, which means the house should be sold to the buyer. In case, the owner decides to circumvent the contract rules by not selling the house, then the buyer can use the signed contract as evidence and file a lawsuit against the owner to have the court force the sale.

Since these home protection laws vary from one state to the other, it is very essential for the homeowners to understand these laws very carefully in their respective states. This would allow them to know about their rights as a homeowner, helping them to deal with situations where they would have to confront the creditor’s demands. They would be able to protect their property from being taken away by the creditors if they are fully aware of their rights. If you need any clarification about your particular situation on the subject, you may wish to ask a real estate lawyer for legal insight based on an expert evaluation of your circumstances.

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