Legal Question in Real Estate Law in California

Under the California Homestead Declaration am I protected in a foreclosure or a short-sale due to medical expenses?


Asked on 8/10/09, 6:10 pm

2 Answers from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Probably not......a declared homestead protects you against enforcement of involuntary liens, filed after the date of the homestead declaration. Even then, the homestead doesn't prevent a foreclosure, it merely limits the creditor's rightto the proceeds.

A declared homestead does not afford any protection against a voluntary lien, such as a mortgage ornote and deed of trust. (Such liens are "voluntary" in the sense that you agreed to put up your property as collateral. An example of an "involuntary" lien is a lien created by a judgment against you.)

The reason for a foreclosure (or short sale) is generally not a deciding factor in the rights of the creditor.

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Answered on 8/10/09, 7:03 pm

Bryan Whipple's answer is absolutely correct.

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Answered on 8/10/09, 8:33 pm


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