File a Homestead? (lien, forced, homeowner, property)

[Juxtaposition109]

Hello all my fellow CD people;

I hope today is going well for you. I'm a first time homeowner and I have a question I'm hoping some of you can help me with. In your opinion is filing a homestead a good idea? I know many things are different state by state, my state is Nevada and reading the forms for my county it says that a homestead protects up to 550k. As far as what I've read so far a homestead basically protects your home from creditors and other non mortgage related parties trying to take your home in the case that you owe a large sum of money for medical, credit, etc.... It's only a total of around $50 to file here in Nevada so that seems like good investment, however like all things I like to research a lot and ask a lot of questions to get other people's experiences and knowledge about things I'm not educated about. Please share with me your opinions, stories, and advice on homesteading your house. Thx

[need4speed2012]

WHAT THE LAW PROVIDES:

When you record a Declaration of Homestead, Nevada law protects the equity in your home up to $550,000 from general creditor claims (unpaid medical bills, bankruptcy, charge card debts, business/personal loans, accidents) but would not preclude a seizure or forced sale of your residence from general creditors if your equity exceeds the $550,000. A creditor may file suit and can record a judgment lien against any real property you own. Recording a Declaration of Homestead protects your principal residence up to the statutory maximum. For example, if the value of your home is $645,000 and you have a first mortgage of $485,000 plus a second mortgage of $10,000, the equity is $150,000.

WHAT IS NOT PROTECTED:

The Homestead law does not protect you against debts secured by a mortgage or deed of trust, payment of taxes, IRS lien, mechanic's lien, child support or alimony payments.

Homestead Law