Often at the onset of the New Year, many of us make a commitment to “be better”: thinner, healthier, kinder, debt free… somehow “better”.   Perhaps you have decided to pay more attention to your finances.  If you own your home, a homestead declaration is something you should be aware of.

George and I recorded a homestead declaration on our home.  A homestead declaration prevents the homeowner from losing (the protected) portion of their equity as a result of lawsuits which result in judgment lien(s).

The home must be your primary residence.  The exemption amounts have recently increased.  The amounts of (protected) equity (liens such as lender’s take priority) are:

(a)  $75,000 for a single homeowner
(b)  $100,000 for a member of a family unit (parent, husband and wife, etc.)
(c)  $175,000 for a person who is (1) 65 years of age or older, (2) physically or mentally disabled and unable to work, or (3) 55 years of age or older and has a gross annual income of $15,000 or less, or $20,000 or less if married. 

If you are uncertain whether or not you have a recorded homestead declaration filed, you can contact your Realtor© or the Los Angeles County Registrar’s office at (562) 462-2125.