Nevada homeowners should embrace the protections Nevada Homestead Law offers and protect their equity. The Nevada Homestead Law is designed to protect homeowners from entirely losing the equity of their homes. Generally, a homeowner may claim homestead protection for their primary residence, the home where they reside, and this has been defined as a Homestead. A Homestead may be a house, including the land or lot it sits on, an apartment, a condo, townhome, mobile home, etc.
In Nevada, when a homeowner records a Declaration of Homestead with the county recorder, up to $550,000 of their home’s equity may be protected.
If a creditor files lawsuit against a homeowner and obtains a judgment, the creditor may record a judgment lien against any real property the person owns. Recording a Declaration of Homestead protects the homeowner’s principal residence up to the statutory maximum and from this type of general debt:
· Debt from credit cards
· Debt from unpaid medicals bills
· Debt from accidents
· Debt from personal or business Loans
It is important to note that the Homestead’s equity will not be protected from foreclosure for failure to make mortgage payments.
If the homeowner has already filed a Declaration of Homestead, he or she has to make sure it is current. If the Homestead has been moved in and out of a trust, for example, it is important that that the homeowner re-records the Declaration of Homestead to be able to enjoy the protections of the Nevada Homestead Law and protect their Homestead’s equity.
A Nevada Homestead is a powerful and simple tool that can be used to protect your home’s equity. We recommend contacting an experienced Nevada lawyer to discuss how a homestead can help you.