Protect the Equity in Your Home
Under California law, homeowners are entitled to protection of a certain amount of equity in their home. The amount protected varies depending on the age, marital status, and income of the property owner.
The homestead exemption does not prohibit the sale of the property. The property can be sold if the sale would produce enough money to:
- Pay all existing liens on the property
- Pay off all mortgages and loans secured by the equity in the home
- Pay the costs of selling the home
- Allow the homeowner to keep equity in the amount protected by the homestead exemption
Rather than prohibiting the sale, the homestead exemption merely ensures that the homeowner receives the amount of the exemption before the creditors are paid from the sale proceeds. The exempt funds received from the voluntary sale of the property remain exempt from debt collection attempts for six months, and can be used to purchase another residence.
The declarations must be in a format that the Sacramento County Recorders Office will accept. Customizable templates may be downloaded from these links:
Click here to download this Guide, with step-by-step instructions, including sample forms.