Two Homestead Questions
I received two short homestead questions this week. The first situation involved a homeowner who failed to pay an assessment made by his homeowners association. The Association placed a lien on his homestead for the amount of the unpaid assessment. The homeowner asked if the Association could kick him out of his house. The Association's lien is in the class exceptions to the Constitution's homestead protection. The Association can sue to foreclose the lien, and the lien foreclosure would have the same consequences as a mortgage foreclosure.
The second question came from a homeowner whose homestead property was situated on a one-acre lot within a municipality. The homeowner wanted to know the extent of his homestead protection. A creditor with a judgment could force the sale of the property and the homeowner would be entitled to 50% of the sale proceeds. The allocation is based on the ratio the ½ acre exemption and the total lot area. The homeowner cannot allocate his ½ acre exemption to that part of the property on which his residence is constructed.
posted by Jonathan Alper, asset protection and bankruptcy attorney, Orlando, Florida
