homestead law

[mitgr5200@yahoo]

What is the name of your state (only U.S. law)? Texas

is it recommended that an application for a homestead be filed or are the protections pretty much granted without the application through state law? (with conditions of resident owned, single family residence and small lot that house is on)

 

[FlyingRon]

Texas homesteads are created by the virtue that you are using the land consistent with the appropriate provisions in the law. There are at least three different definitions of homestead in Texas law, so you're going to have to explain just what it is you are concerned about and where the lot is located (urban and rural homesteads have different rules).

 

[mitgr5200@yahoo]

Texas homestead

Texas homesteads are created by the virtue that you are using the land consistent with the appropriate provisions in the law. There are at least three different definitions of homestead in Texas law, so you're going to have to explain just what it is you are concerned about and where the lot is located (urban and rural homesteads have different rules).

It is in Fort Worth, it is urban. Then I gather there is really no reason to do it, is that right? Neighbors seem to think that making the application protects their property from later financial problems from creditors. better. Wrong?

 

[Sheriff10]

It is in Fort Worth, it is urban. Then I gather there is really no reason to do it, is that right? Neighbors seem to think that making the application protects their property from later financial problems from creditors. better. Wrong?

If the property is your primary residence, then you should declare the property as your homestead to receive the tax benefit afforded homeowners. You do this through the county appraisal district in which you reside. You may be able to do this online or by having them mail you the homestead affidavit. It won't make you rich, but there will be a small property tax reduction.

As far as the legal ramifications are concerned, I have never heard of a formal homestead declaration that would protect you from a creditor attaching a lien to your home. Certainly, any legal lien holder will have rights in the event you default on your mortgage. These rights include foreclosure. Homesteads are foreclosed on everyday. Unfortunately.

 

[mitgr5200@yahoo]

homestead

If the property is your primary residence, then you should declare the property as your homestead to receive the tax benefit afforded homeowners. You do this through the county appraisal district in which you reside. You may be able to do this online or by having them mail you the homestead affidavit. It won't make you rich, but there will be a small property tax reduction.

As far as the legal ramifications are concerned, I have never heard of a formal homestead declaration that would protect you from a creditor attaching a lien to your home. Certainly, any legal lien holder will have rights in the event you default on your mortgage. These rights include foreclosure. Homesteads are foreclosed on everyday. Unfortunately.

http://www.lonestarlandlaw.com/Texas-Homestead.html

at the above link, it says in part, "

Designating a Homestead

It is useful, both for ad valorem tax purposes and for protection from creditors, to file an affidavit designating the homestead in the real property records of the county in which the property is located. Tex. Prop. Code § 41.005. However, for protection from creditors, this is not strictly necessary. The homestead arises automatically when required legal conditions occur. Graham v. Kleb, Civ. Act. Nos. H-07-2279, H-07-2878, 2008 WL 243669, at *4 (S.D. Tex. Jan. 29, 2008) (not selected for publication). Also, if a person receives a homestead tax exemption then creditor protection is automatic.

this seems to say you can file the affidavit, but it is not necessary, would you advise filing this for some obscure thing that might come up or do you think the automatic part covers this? (I will file the part about property taxes though, as you suggested)

thank you very much for taking the time to answer my questions, it is very much appreciated

 

[FlyingRon]

As I pointed out, the term "homstead" means different things. For the tax emption purposes, people have pretty much parrotted back the rules.
An urban homestead for the purposes of avoiding certain creditor attachments does not take any formal declaration, it's just something you assert in defense to legal action that may try to attach it.
Unsecured debts can not attach anything to your homestead.