[Nancy Lynne]

I don't understand the Homestead Act. Is it true that one cannot be forced out of one's home...even if one goes bankrupt or is forced into foreclosure ?(I realize that doesn't make sense).

I'd appreciate any feedback or insight.

Hope everyone had a nice turkey day.

[summergal]

Yes that is correct. Also a person's wages cannot be attached or primary vehicle taken either. That explains why people like O.J. and many big-wig CEOs have their multimillion dollar "vacation" homes here. If they get into a bankruptcy situation/corporate scandal, they simply change the declaration of primary residence to the FL mansion and they are sheltered from creditors... they can have a palace and fancy lifestyle without paying their judgements.

I don't think forclosure is exempted though.

It was intended to protect regular homeowners, but is being used by the rich to shelter themselves from their scandals. I believe there was going to be a change in the law to combat this but don't know if it went through or not?

[FloridaAnn]

I believe that you are not protected for forclosure or for IRS attack. Other creditors cannot touch your primary home in FL. but I believe you must have homestead exemption on it.

[tallrick]

It's one of the few good things about Florida. Unfortunately the government can still sieze your property as they see fit. (communism) This should be expanded to protect from any entity forcing you out of your home. Well at least the lawsuit happy losers can't sue like they did to OJ in California. That to me was unbelievable, someone's declared not guilty then held liable for the same murders. If the police weren't so incompetant this might have ended another way.

A mortgage company can forclose because they own part of the property value anyway.

[Milabs]

Homestead exemption is just stating that Florida is your primary home and you get a 25K break on the value of your home which is reflected in your property taxes.

Homestead will NOT stop someone from taking your home or car for defaulting on a loan. Homestead is not a protection plan.

[tallrick]

SECTION 4. Homestead; exemptions.--

(a) There shall be exempt from forced sale under process of any court, and no judgment, decree or execution shall be a lien thereon, except for the payment of taxes and assessments thereon, obligations contracted for the purchase, improvement or repair thereof, or obligations contracted for house, field or other labor performed on the realty, the following property owned by a natural person:

(1) a homestead, if located outside a municipality, to the extent of one hundred sixty acres of contiguous land and improvements thereon, which shall not be reduced without the owner's consent by reason of subsequent inclusion in a municipality; or if located within a municipality, to the extent of one-half acre of contiguous land, upon which the exemption shall be limited to the residence of the owner or the owner's family;

(2) personal property to the value of one thousand dollars.

(b) These exemptions shall inure to the surviving spouse or heirs of the owner.

(c) The homestead shall not be subject to devise if the owner is survived by spouse or minor child, except the homestead may be devised to the owner's spouse if there be no minor child. The owner of homestead real estate, joined by the spouse if married, may alienate the homestead by mortgage, sale or gift and, if married, may by deed transfer the title to an estate by the entirety with the spouse. If the owner or spouse is incompetent, the method of alienation or encumbrance shall be as provided by law.

It's written in the state constitution.

[Milabs]

Originally Posted by FL Homestead Services

How untrue. Homestead is the greatest constitutional protection Floridians have against their homes, equity and real property. Read all about it at our website: www.floridahomesteadservices.com
or at our BBS: www.homesteadpropertyexemption.info

please tell that to the ppl who are in the process of losing their homes to forclosure because they no longer can afford their mortage payments.

You can't just stop paying your mortage and live in the house for free..you also can't just stop paying your taxes and live there for free.

Contact the HUD dept or y our mortage company and ask them what will happen if you don't pay your mortage.

[macguy]

Originally Posted by FL Homestead Services

How untrue. Homestead is the greatest constitutional protection Floridians have against their homes, equity and real property. Read all about it at our website: www.floridahomesteadservices.com
or at our BBS: www.homesteadpropertyexemption.info

Liens placed on the house may not let them get you out of get their home, but the lien will never go away and grow till you owe more then the house is worth if you sell it. You may be able to stay for a while but you will ultimately lose everything the house is worth and have them after you personally forever. When I was in the hospital a few years ago, they automatically places a lien on my house even though I have insurance. They leave no bases uncovered and no one is getting away with anything.

[Prichard]

Liens placed on the house may not let them get you out of get their home, but the lien will never go away and grow till you owe more then the house is worth if you sell it.

This is not exactly correct. Basically, if you hire a contractor to do work on your house and don't pay him, and the contractor properly records a lien against your property, he can foreclose it just like your bank can foreclose its mortgage. Ultimately, if you do nothing, you will be kicked out of your house.

The rule of thumb is that if you sign a piece of paper that permits someone to put a lien on your property, you can loose your house in a foreclosure. Homestead will do nothing to protect you.

When I was in the hospital a few years ago, they automatically places a lien on my house even though I have insurance.

Nope, only if you signed something that gave the hospital a mortgage could it do this if you don't pay your bill. There is no lien rights for ordinary debts, hospital debts and any non-construction related and non-mortgage debts in Florida.

[TriMT7]

Originally Posted by Milabs

please tell that to the ppl who are in the process of losing their homes to forclosure because they no longer can afford their mortage payments.

You can't just stop paying your mortage and live in the house for free..you also can't just stop paying your taxes and live there for free.

Contact the HUD dept or y our mortage company and ask them what will happen if you don't pay your mortage.

Homestead does not protect against mortgage or tax foreclosure. Which makes sense, because your house is collateral for the mortgage and lenders won't ever lend money!!! (And of course, the tax man is omnipotent!)

But anyway, there are three types of advantages to homestead in Florida, all of which are beneficial:

1) Tax Purposes: Reduces your assesed value by $25,000

2) Inheritance Purposes: Your homestead cannot be "willed" out if you have minor children or are married.

3) Protection against judgments and non-mortgage creditors.