According to Texas law, "Homesteads are generally not subject to attachment, execution, or forced sale by creditors." However, there are currently nine exemptions in the law associated with:
Purchased money, i.e. mortgages
Taxes
Mechanic's liens
Partition liens
Refinancing parties
Home equity loans
Reverse mortgages
Manufactured home refinancing
Preexisting lien
If you are considering filing for protection under this law, consult an attorney before initiating any action.
According to Texas law, "A survivor's homestead entitles the surviving spouse to occupy or use the homestead for life or for so long as the surviving spouse chooses to do so. " However the surviving spouse must continue to reside on the homestead. Congruently, surviving minor children are also protected to the same degree. These codicils, however, also apply in terms of the aforementioned exemptions.
Upon completion of appropriate forms and paying requisite fees, the homeowner can experience a $3,000.00 reduction in the assessed value of a homestead. Additionally, an adult can see a $15,000.00 reduction in terms of school tax assessments, and a $25,000.00 reduction, in the event that an individual is physically challenged, or if he is over 65. These reductions are as of 2009.
In order to file for a homestead exemption, all the homeowner needs to do is complete an Application for Residential Homestead Exemption form, and file it with the county appraisal district. In the event that the property is sold, the homeowner has 6 months to translate the original grant to another property location.
As mentioned earlier, there are different exemptions and advantages for each state. Therefore, you should research and understand the specific law in association with your location. To gain more information, you should contact your tax assessment office, or simply follow the active resources links below.