California and many other states have homestead laws to protect families. Some or all of the land that is occupied by a family as their home is exempt from the claims of, or eviction by , unsecured creditors. A homestead is not truly an encumbrance, but it surley does limit the amount of liabilty for certain debts against which a home can be used to satisfy a judgment. A Declaration of Homestead is the recorded document that protects a homeowner from foreclosure by certain judgment creditors.
The first $75,000.00 of a home`s value may NOT be used to satisfy a judgement against the head of a household. A mentally or physically disabled person or someone over the age of 65 is entitled to protection up to $150, 000.00. All others have a homestead exemption of $50,000.00. A homestead does not protect an owner against foreclosure on a trust deed, mechanic`s lien or lien recorded prior to the filing of the homestead.
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