Posted by HisHughness on 12/14/04 11:15am
Msg #13557

Homestead exemptions

I have a question for those of you who have worked for title companies or lenders or anyplace else where you would acquire the expertise to respond.

Always when I handle a refi packet here in Texas, the package includes a homestead affidavit for the borrowers to complete. I had always assumed that when a home was refinanced, a new homestead affidavit was required. Yesterday I handled a refi for a couple and the packet did not include a homestead affidavit. The title company was a Texas outfit. I called to ask about the absence, and the processor had no idea what I was talking about. She said they do not provide them, and they are not required. Any insight anybody can give me?

Reply by PAW Notary Services on 12/14/04 12:22pm
Msg #13583

Don't know about Texas homestead, but Florida homestead is independent of the mortgage. It is for the owner's of the property, whether there is a mortgage or not. If the mortgage is paid off and then remortgaged, or the current mortgage(s) is(are) refinanced or a second is added, it doesn't change the homestead filing, exemption and safeguards. The only time a Florida resident needs to file for homestead is when their principle residence address physically changes.

Reply by Ninna Mantooth-Lopez on 12/14/04 6:58pm
Msg #13637

Ditto in Louisiana, Paul...

mortgaging the property does not affect the homestead filing. The homestead filing would only be affected when the owners change their physical address (primary residence address).

Reply by Paul_IL on 12/14/04 11:56pm
Msg #13662

I think you are confusing Homestead. I think what Hugh is talking about is the Homestead Exemption Waiver which is signed by all owners since the mortgage is a voluntary lien on the property and not the tax Homestead. Many mortgages already contain the wording but some lenders require an additional waiver form to be signed at closing.

Reply by PAW Notary Services on 12/15/04 8:36am
Msg #13679

I guess I don't understand what this "waiver" accomplishes. Why would anyone agree to waive an exemption, especially on homesteaded property?

Under Florida's state constitution, everyone is entitle to a homestead exemption on their primary (homesteaded) residence. The only "waiver" that I have found on the FL books is if you miss the March 1st deadline for filing, the exemption is waived. However, once filed, the exemption is automatically renewed from year to year until the title changes hands or the property no longer is the homestead. It may have something to do with DOT states vs mortgage states, since FL is a mortgage state. Title not is put in trust for a lender, only a lien placed against the property.

Reply by Paul_IL on 12/15/04 2:21pm
Msg #13705

Why it is waived is because by taking out a mortgage you are placing a Voluntary lien on the property. If you do not agree then they will not loan you the money. Normally used if only one owner on the note. that way the spouse on the note cannot default on the loan and the non borrowing spouse claims homestead exemption leaving the bank unable to forclose on the property. Illinois is also a mortgage state.

Reply by Bob-Chicago on 12/15/04 2:58pm
Msg #13707

Re: Homestead exemptions--FL

As I understand, Fl has special rules for a principle residence being exempt from siezure for debts, other than a mortgage on the property
That is why OJ and some of the Enron deadbeats are building mansions in Fl so that they will be able to keep them after it hits the fan

Reply by Paul_IL on 12/14/04 12:26pm
Msg #13585

Hugh,
I have seen many mortgages with a Homestead Wavier section in the mortgage itself. If it is not then they add the affidavit.

Reply by mike/ca on 12/14/04 2:49pm
Msg #13608

in ca if they had a previous homestead they revoke it and apply for a new one

Reply by KC/IN on 12/14/04 10:50pm
Msg #13655

IN is the same as FL. (Now that Hugh knows what the standards are in every other state, he can continue to seek an answer to his question)

Reply by ShannonB on 12/15/04 12:06am
Msg #13663

I am new to this forum but experienced (12 years) and here in Virginia a homestead exemption is not signed with a loan package that I have ever done. It is in the body of the doc and it exempt the property from bancruptcy. A homestead deed is filed here in land records to exclude it from the owners bankruptcy. Usually finding a homestead deed during a title search is a sure sign that a bankruptcy has been filed. But I am in Virginia so it may not apply to everyone.