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What good is it to homestead ?

Mesquite, NV |

Does homesteading affect a foreclosure?

Attorney Answers 4

Posted

Recording a declaration of homestead protects you from foreclosure by a judgment creditor if you have less than $550k in equity in your house. It also protects your equity in a bankruptcy by the same amount.

It has no real affect on a foreclosure by a deed of trust and it won't stop a foreclosure by the bank or lender doing a judicial foreclosure or non-judicial trustee foreclosure.

What may help you though us a loan modification or possibly a restructure to reduce the loan amount.

Regards,
William Devine, II
Rainey Devine

I am an attorney, just not your attorney (yet). Any answers here are to be deemed informational unless and until you retain me as your attorney for actual legal services and legal advice. I offer free in-person consultations so feel free to contact me offline by email or phone. If you like my answer, please hit the thumbs up button.

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Posted

Actually filing a homestead in Nevada only has an effect if and when a judgment creditor, rather than your mortgages, sells the home (or, presumably, if there was a judgment lien and equity at a foreclosure).

It can be filed the day of the sale and still has full effect.

It has absolutely no effect on foreclosure.

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1 lawyer agrees

Posted

Filing e Declaration of Homestead has absolutely no effect on foreclosure.

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Posted

A Nevada Homestead prepared and recorded pursuant to NRS 115.020 will protect the property from execution and sale. A secured creditor that is the beneficiary of a deed of trust upon real property has a property interest in the property that supersedes a homeowners rights/protections obtained via homestead. The only protection a homeowner has from eventual foreclosure is to stay current upon the mortgage pursuant to the terms of the promissory note.

The above information is given for informational purposes only. The response to your question in does not create an attorney/client relationship, and no guarantee of privacy exist. If you find the information to be helpful, please check the "helpful" box.

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