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DID YOU KNOW? HOMESTEAD EXEMPTION IN TEXAS



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Texas is one of few states that offer “Homestead Exemption” to its residents. If creditors are hounding you for unsecured debts—as opposed to secure ones, like your mortgage—they can’t take your home as collateral, as long as you declare bankruptcy. In fact, they can’t even place a lien on the property to collect when you sell. These exemptions vary by state: Some, such as New Jersey, have no such safeguard; in California, individuals’ homes are protected up to $75,000. Yet a handful of states—Arkansas, Florida, Iowa, Kansas, Oklahoma, and Texas, as well as the District of Columbia—have unlimited homestead exemption. The homestead exemption isn’t a bulletproof way to ward off foreclosure. Remember, it applies only to unsecured debt such as credit cards—not secured debt like your mortgage.

According to a recent study at Harvard Medical School, doctors in the states like Texas with unlimited Homestead Exemption bought homes that were 13% more expensive than the homes of doctors elsewhere!

Remember that after you have bought a new house, you need to file for the homestead exemption with your county appraisal district. Here is a link to Dallas County Appraisal District.

Here is a FAQ on homestead exemption for Texas

http://www.window.texas.gov/taxinfo/proptax/exemptions/residence_faq.html


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