Face to Face with Financial Ruin—8 Things You Must Do to Protect Yourself and Your Family

1. Homestead Your House

Homestead Exemption

Many mortgage lenders consider a homestead declaration standard paperwork when a buyer fills out loan docs. And some states automatically “homestead” a house at the time of purchase. Depending on where you live, you may be eligible for a homestead exemption that protects your principal residence from a forced sale brought by creditors or banks for non-payment. Homesteading does not protect against foreclosure of your home, by the bank or mortgage lender who holds the Deed of Trust, or a forced sale from judgments for child or spousal support. Homesteading does not apply to secondary residences or recreational vehicles either. If you haven’t already done so, now’s the time to fill out and file for a homestead exemption. Avoid costly services that charge inflated fees and do the paperwork yourself for much less.

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