Posted by Richard Goodwin on 1/8/11 3:29pm
Msg #367632

Waiver of Homestead document

Does anyone know why Citibank has a separate "Waiver of Homestead" document in the signing package? It seems other banks bury this as another paragraph in the mortgage.

Reply by Linda_H/FL on 1/8/11 3:37pm
Msg #367633

Overkill to offset the set-aside? found the following..

http://real-estate.lawyers.com/ask-a-lawyer/Illinois-Homestead-Exemption-6936.html

"Illinois law provides for a "homestead exemption" in the amount of $15,000 that protects owners of "homestead" property from attachment, judgment, levy, or judgment sale for the payment of his or her debts or other purposes and from the laws of conveyance, descent, and legacy (except for certain circumstances contained in the Code of Civil Procedure and/or the Probate Code). See 735 ILCS 5/12-901 et seq. This statutory provision provides that where a judgment creditor forces a sale of one's homestead property to enforce a debt or lien, $15,000 of the forced sale proceeds must be set aside for the benefit of the home owner. Generally, such a forced sale is by way of a "Sheriff's Sale," and the Sheriff's Department is responsible for setting aside the exemption amount from the proceeds of the sale as the Homestead Exemption.

As the name implies, this exemption is limited and applies only to the sale of "homestead" property: a farm, personal residence, condominium, or in a cooperative that owns property that the individual uses as a residence. The Homestead Exemption does not apply to the sale of commercial property. Additionally, the exemption can be waived by a signed writing and, consequently, almost all mortgages contain waiver of the Homestead Exemption. Therefore, in a mortgage foreclosure, in almost all cases, the owner in foreclosure is not entitled to the Homestead Exemption because it was waived in the mortgage instrument itself."

Reply by Les_CO on 1/8/11 3:42pm
Msg #367637

Perhaps it’s State specific? But as you say (at least here in CO) this language is usually in the mortgage/ DOT. It could have to do with the NBS that may not necessarily sign the mortgage or the DOT?

Reply by Richard Goodwin on 1/8/11 3:54pm
Msg #367642

Thank you both for your replies. I am seeing this document in every Citi refinancing for primary residences. It does not matter whether there is a NBS or if both spouses are borrowing. I think it has to do with Linda's research concerning the $15,000 set-aside of sale proceeds.

Reply by Linda_H/FL on 1/8/11 4:01pm
Msg #367650

*Foreclosure* sale proceeds n/m

Reply by Richard Goodwin on 1/8/11 4:10pm
Msg #367652

Re: *Foreclosure* sale proceeds

I stand corrected. Thank you.

Reply by Cari on 1/10/11 9:10pm
Msg #367943

this form is used only when a spouse is waiving their right

to homestead, and I've not seen this particular verbiage in any other mortgages.