Re: losing a 2nd home due to foreclosure
Posted by Julio Martinez-Clark on January 29, 2008 at 13:50:51:
In Reply to: losing a 2nd home due to foreclosure
Posted by jennifer Smith on January 27, 2008 at 11:37:59:
Jennifer,
You're referring to the California Homestead Exemptions. A homestead
exemption does not exempt your entire property, but a portion of the
value. To determine that, you need to read California law. This can be
found at California Code of Civil Procedure 704.730.
www.leginfo.ca.gov/cgi-bin/displaycode?section=ccp&group=00001-
01000&file=704.010-704.210
CALIFORNIA CODES
CODE OF CIVIL PROCEDURE
SECTION 704.730
704.730. (a) The amount of the homestead exemption is one of the
following:
(1) Fifty thousand dollars ($50,000) unless the judgment debtor or
spouse of the judgment debtor who resides in the homestead is a person
described in paragraph (2) or (3).
(2) Seventy-five thousand dollars ($75,000) if the judgment debtor or
spouse of the judgment debtor who resides in the homestead is at the
time of the attempted sale of the homestead a member of a family unit,
and there is at least one member of the family unit who owns no interest
in the homestead or whose only interest in the homestead is a community
property interest with the judgment debtor.
(3) One hundred fifty thousand dollars ($150,000) if the judgment debtor
or spouse of the judgment debtor who resides in the homestead is at the
time of the attempted sale of the homestead any one of the following:
(A) A person 65 years of age or older.
(B) A person physically or mentally disabled and as a result of that
disability is unable to engage in substantial gainful employment. There is
a rebuttable presumption affecting the burden of proof that a person
receiving disability insurance benefit payments under Title II or
supplemental security income payments under Title XVI of the federal
Social Security Act satisfies the requirements of this paragraph as to his
or her inability to engage in substantial gainful employment.
(C) A person 55 years of age or older with a gross annual income of not
more than fifteen thousand dollars ($15,000) or, if the judgment debtor is
married, a gross annual income, including the gross annual income of the
judgment debtor's spouse, of not more than twenty thousand dollars
($20,000) and the sale is an involuntary sale.
(b) Notwithstanding any other provision of this section, the combined
homestead exemptions of spouses on the same judgment shall not
exceed the amount specified in paragraph (2) or (3), whichever is
applicable, of subdivision (a), regardless of whether the spouses are
jointly obligated on the judgment and regardless of whether the
homestead consists of community or separate property or both.
Notwithstanding any other provision of this article, if both spouses are
entitled to a homestead exemption, the exemption of proceeds of the
homestead shall be apportioned between the spouses on the basis of
their proportionate interests in the homestead.
Whether or not you or your assets will be "touched" depend on the
California foreclosure rules at www.sandiegopredatorylending.com/?
p=33
(Read them carefully).
From an article that I recently wrote on the topic titled "Homeowners
Dilemma: To be or not to be in Foreclosure":
"If you are concerned about a creditor obtaining a judgment against you,
It's advisable that you seek professional help and implement as soon as
possible some type of asset protection strategy such using Land Trusts,
Personal Property Trusts, etc to protect your assets against creditors (see
/Land_Trusts.html). The point is not for
lenders to get a judgment; but to collect on it - that's were the challenge
and the art is. A decision to collect any judgment (regardless of the size)
is really "collectability." If you are an easy target (bank accounts on your
name, easily locatable address, real estate, and cars on your name, etc),
their attorney will come after you. If you are "invisible," they won
Follow Ups:
- Re: losing a 2nd home due to foreclosure - Leeroy 01:13:19 02/02/08
(1)
