Homestead Exemption Questions

[RCH99]

I'm just happy to know that donkeys are exempt.

[cocojambo]

Originally Posted by RCH99

I'm just happy to know that donkeys are exempt.

Haha good stuff.

[Squints1232003]

I've been looking through the threads and couldn't find something similar to what I'm trying to ask but here goes:

I'm in the market to purchase a house and wanting every way to save money. My realtor said it would be advisable to purchase the home prior to January 1, however my mortgage broker advised to purchase the home after January since I would be saving money. Can someone advise me on who is telling the truth here? I've read that the exemption does save me money, etc, but when is it really better to buy the home? Thanks for all the help in advance!

[cheryjohns]

Originally Posted by Squints1232003

I've been looking through the threads and couldn't find something similar to what I'm trying to ask but here goes:

I'm in the market to purchase a house and wanting every way to save money. My realtor said it would be advisable to purchase the home prior to January 1, however my mortgage broker advised to purchase the home after January since I would be saving money. Can someone advise me on who is telling the truth here? I've read that the exemption does save me money, etc, but when is it really better to buy the home? Thanks for all the help in advance!

You have to own the home as of January 1 in order to claim the homestead exemption, which saves on your taxes - which is where your Realtor was coming from. I have no idea why your loan officer is telling you to wait.

[mjdtexan]

Originally Posted by cheryjohns

You have to own the home as of January 1 in order to claim the homestead exemption, which saves on your taxes - which is where your Realtor was coming from. I have no idea why your loan officer is telling you to wait.

I was wondering the same thing about the loan officer. It must be in the loan officers best interest or something. Or I reckon it could be something we just dont know about yet.

[cheryjohns]

Originally Posted by mjdtexan

I was wondering the same thing about the loan officer. It must be in the loan officers best interest or something. Or I reckon it could be something we just dont know about yet.

Just guessing. I have dealt with many a loan oficer - they don't have a crystal ball as to interest rates and typically are behind realtors as to financial news (which is truthfully weird). I have often told them what was going on. I have one that keeps up with everything - no warm and fuzzies from this guy - but he knows whats going on, sharp, competitive rates, and low closing costs, so I can give up the warm fuzzies - and he hasn't said anything.

[HoustonRonnie]

Originally Posted by mjdtexan

I understand that the homestead thing saves me money on taxes. Will the homestead exemption save my home if somebody is suing me and wins a judgement?

If you mean "Is my home protected from a forced sale if someone wins a monetary judgement against me?" then the quick answer: YES, with major exceptions.

Texas Homestead Exemption prevents the forced sale of a home to meet the demands of creditors, with the exception of mortgage holders, note holders (see below) and tax authorities. Finally, it provides a surviving spouse with shelter.

A homestead may be subjected to forced sale only for debts for (i) purchase money (like a mortgage or second lien on the homestead), (ii) taxes due on the homestead, (iii) work and material used in constructing improvements made thereon, (iv) an owelty of partition imposed against the entirety of the property by a court order or by a written agreement of the parties to the partition, including a debt of one spouse in favor of the other spouse resulting from a division or an award of a family homestead in a divorce proceeding, (v) the refinance of a lien against homestead, including a federal tax lien resulting from the tax debt of both spouses, if the homestead is a family homestead, or from the tax debt of the owner, and (vi) a home equity loan meeting the conditions of Section 50(a)(6). Tex. Const. art. XVI, § 50 (Vernon Supp. 1999); Tex. Prop. Code Ann. § 41.001(b). ( Vernon Supp. 1999).

[HoustonRonnie]

Originally Posted by jmeadors

Exactly. If someone sues you and wins a judgement, the homestead won't nullify the judgment--it's still out there--but if you have claimed a property as your homestead, creditors cannot force you to sell it to satisfy the judgment.

Oh, yes they can. See above.

[mjdtexan]

Originally Posted by HoustonRonnie

If you mean "Is my home protected from a forced sale if someone wins a monetary judgement against me?" then the quick answer: YES, with major exceptions.

Texas Homestead Exemption prevents the forced sale of a home to meet the demands of creditors, with the exception of mortgage holders, note holders (see below) and tax authorities. Finally, it provides a surviving spouse with shelter.

A homestead may be subjected to forced sale only for debts for (i) purchase money (like a mortgage or second lien on the homestead), (ii) taxes due on the homestead, (iii) work and material used in constructing improvements made thereon, (iv) an owelty of partition imposed against the entirety of the property by a court order or by a written agreement of the parties to the partition, including a debt of one spouse in favor of the other spouse resulting from a division or an award of a family homestead in a divorce proceeding, (v) the refinance of a lien against homestead, including a federal tax lien resulting from the tax debt of both spouses, if the homestead is a family homestead, or from the tax debt of the owner, and (vi) a home equity loan meeting the conditions of Section 50(a)(6). Tex. Const. art. XVI, § 50 (Vernon Supp. 1999); Tex. Prop. Code Ann. § 41.001(b). ( Vernon Supp. 1999).

Wow, this tread is more than a 1½ old. I must say though, your answer is thorough though. I appreciate it. Thank You so much.

Let me ask you an unrelated question. Are there any good furniture grade hardwood suppliers out in Pearland? Off topic I know.