Legal Question in Business Law in Colorado

Re: Homestead protection

California has two types of homestead. You got a "Declared Homestead" by filing for it; there is also a "Dwelling House Exemption" sometimes called an automatic homestead. You seem to have both.

Homesteads are the subject of a lot of misunderstanding. The protection isn't as absolute or effective as many believe. In fact, the homestead provides no protection at all from a lienholder. If your house itself was put up as collateral, you are unprotected.

I advise you get a real-estate lawyer with foreclosure experience in your county at once to see what can be done to prevent foreclosure. You are in a heap of trouble and it will only get worse if you try to navigate these waters by yourself. Good luck.