Declaration of Homestead, Protect Your Investment

The world has gone crazy. Working harder, making less and doing their absolute best to protect everything they have worked for. Surprisingly, most people I talk to in Nevada aren't aware that they can file a Homestead Declaration. This process is to help protect their home investment in the event they run into certain forms of financial trouble.

From the Clark County Courthouse: WHAT THE LAW PROVIDES: When you record a Declaration of Homestead, Nevada law protects the equity in your home up to $550,000 from general creditor claims (unpaid medical bills, bankruptcy, charge card debts, business/personal loans, accidents) but would not preclude a seizure or forced sale of your residence from general creditors if your equity exceeds the $550,000. A creditor may file suit and can record a judgment lien against any real property you own. Recording a Declaration of Homestead protects your principal residence up to the statutory maximum. For example, if the value of your home is $645,000 and you have a first mortgage of $485,000 plus a second mortgage of $10,000, the equity is $150,000.

WHAT IS NOT PROTECTED?

The Homestead Law does not protect you against debts secured by a mortgage or deed of trust, payment of taxes, IRS lien, mechanic's lien, child support or alimony payments.

The State of Nevada website lists contact info for each county to find filing and fee details. You will need your property legal description and parcel number, so dig it out and call your county recorder to get started.

If you have never heard of a Declaration of Homestead, Mother Earth News has an excellent article that explains the benefits of filing for protection!