Legal Question in Real Estate Law in Florida

Re: Libility Associated with Home Equity Loans

Your homestead is exempt rom judgment. Having a home equity loan on it changes nothing.

Re: Libility Associated with Home Equity Loans

If you default in paying the loan, yes.

Re: Libility Associated with Home Equity Loans

NOTE: This communication is not intended as and should not be interpreted as legal advice. Rather, it is intended solely as a general discussion of legal principles. You should not rely on or take action based on this communication without first presenting ALL relevant details to a competent attorney in your jurisdiction and then receiving the attorney's individualized advice for you. By reading the "Response" to your question or comment, you agree that the opinion expressed is not intended to, nor does it, create any attorney-client relationship, nor does it constitute legal advice to any person reviewing such information, nor will it be considered an attorney-client privileged communication. If you do not agree, then you are instructed to stop here, and do not read any further.

The only way you can lose your homestead is by failing to pay the mortgage (or maybe taxes to the IRS). A home equity loan is considered a second mortgage on the property.

The homestead laws of the State of Florida protect you against all other creditors.

Scott R. Jay, Esq. 305-249-8000

Re: Libility Associated with Home Equity Loans

NOTE: This communication is not intended to be legal advice. Instead, it is intended solely as a general statement regarding legal principles. You should not rely on or take any action based on this communication without first presenting all relevant details to a competent attorney in your jurisdiction, receiving such attorney's individualized advice for you, and establishing an attorney-client relationship. By reading this "Response" to your question or comment, you agree that the opinion expressed herein and/or the information contained in this response is not intended to, nor does it, create any attorney-client relationship with the law firm of Gonzalez & Associates, P.A. or any of its attorneys, nor does it constitute legal advice to any person or entity reviewing such information, nor will it be considered an attorney-client privileged communication. If you do not agree with the foregoing, then you are instructed to stop here, and do not read any further.

The short answer to your question is no. It does not matter whether you purchased the car with a home equity loan or home equity line of credit or with money you found in the garbage. Once the car is purchased it is yours and if you hurt or kill someone in an accident involving your car, and you are wholly or partially at fault for the accident, you may get sued or served with a claim, but the claimant/plaintiff (assuming the plaintiff gets a final money judgment against you) cannot go after your home in Florida simply because you may have purchased the car using money given based on the equity in your home. This assumes your home is your homestead, which is exempt from the claims of creditors in Florida. The only creditor that can take away your home (foreclose) is the lender who lent you the money to buy it, assuming you fail to pay your mortgage loan. If you do not default on mortgage loans, then you should not be in fear of losing your home to a creditor. If you get sued, you should immediately notify any and all insurance carriers that may have coverage for the loss and consult with a personal attorney to make sure your rights are protected.