Homestead in NV

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Topic Author
Investment101
Posts: 99
Joined: Sat Jul 05, 2014 5:09 am

Homestead in NV

Post by Investment101 »

Hi guys got a question, I was wondering about this since in the NV site it's very brief about it. In NV the homestead covers the house up to 605K, if the house has equity over 605k (subtracted after mortgage or paid off) then I understand they can put the house for sale. Let's say the equity is 700k and they can collect 95k after they sold the house, then what happens to the 605k? Can the same creditor collect part of the 605k since it's not a house (homestead) anymore? If there are more than 1 creditors can they collect directly from the 605k after house is sold and you don't even get to see any of the money? (If you get to see the 605k first and want to avoid the creditors, I suppose buy another house asap or don't deposit to accounts under your name?)

So is the best strategy to keep the equity under 605k or what?

This is NV's homestead statutes:

Procedures for What the Law ProvidesWhen you record a Declaration of Homestead, Nevada law protects the equity in your home up to $605,000 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 $605,000. 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.

(From https://www.clarkcountynv.gov/governmen ... _stead.php)

It says It covers "accidents" , is that like car accident, or when you accidentally hit someone from a golf swing? UPS guy trip on your property? or what.

How effective is it? will it protect the house like it says when the trouble comes? like it said "When you record a Declaration of Homestead, Nevada law protects the equity in your home up to $605,000 from general creditor claims (unpaid medical bills, bankruptcy, charge card debts, business/personal loans, accidents)" Will it protect you 100% as long as it's in the categories it mentioned above? any exception?
Topic Author
Investment101
Posts: 99
Joined: Sat Jul 05, 2014 5:09 am

Re: Homestead in NV

Post by Investment101 »

Anyone? what happens when equity is over 605k?
Topic Author
Investment101
Posts: 99
Joined: Sat Jul 05, 2014 5:09 am

Re: Homestead in NV

Post by Investment101 »

bump..
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