Homestead exemption in Texas..Question?

[Txgirl]

I have been trying to read if you can have a lien placed on your home in Texas for unsecured debt?

I know you can have a lien placed on your home for like defaulting in an home equity loan or by a contractor, but am not sure if for unsecured debt (credit cards).

I tried reading the official state law regarding this, but don't understand!

[rockyroad]

I too, have been searching for this information in plain simplified English!
I have been sued and have a judgment bearing down on me very soon. I will not be able to file before I receive the judgement so I'm wondering if the creditor will be able to place a lien on my home??
Hopefully someone can answer this for us!

[lrprn]

According to a TX lawyer who answered a question very similar to yours on another internet forum, the answer is yes. See http://www.justanswer.com/questions/...as-lein-placed - scroll down to the answer provided by Travellawyer.

Of course, the answer is posted on the net, so its reliability could be suspect. There's really only one 100% reliable way to get an answer your question taking into account all your unique financial aspects and that's to get a TX lawyer who is representing you to answer it.

[Txgirl]

I have read such contradicting information.

Here is what the Texas Constitution says, however I need it in laymen terms:

http://tlo2.tlc.state.tx.us/txconst/sections/cn001600-005000.html

Here's another article:

http://www.utcle.org/eLibrary/preview.php?asset_file_id=9063

[lrprn]

I have read such contradicting information.

Here is what the Texas Constitution says, however I need it in laymen terms:

http://tlo2.tlc.state.tx.us/txconst/sections/cn001600-005000.html

Here's another article:
http://www.utcle.org/eLibrary/previe...t_file_id=9063

This has to be very frustrating for you, Txgirl. However, we can't give you a legal interpretation of the Texas statutes here. That would be giving you legal advice - something which the forum states clearly we can't do.

If you haven't had any free initial consultations with TX bk lawyers in your area yet, even if you intend to file on your own, you could still talk with them to see what they tell you what could happen in your specific financial situation with the trustees in your local court.

[Txgirl]

This has to be very frustrating for you, Txgirl. However, we can't give you a legal interpretation of the Texas statutes here. That would be giving you legal advice - something which the forum states clearly we can't do.

If you haven't had any free initial consultations with TX bk lawyers in your area yet, even if you intend to file on your own, you could still talk with them to see what they tell you what could happen in your specific financial situation with the trustees in your local court.

I understand about the not giving legal advice. However I just wanted to see if there was something that was easier to understand that would state yes or no.

I promise I wasn't trying to get legal advice, just understand! One website says yes, the other says no. Unfortunately, I am unable to go the BK route.

[2Bshinyandnew]

The TX Constitution that you linked us to here:

http://tlo2.tlc.state.tx.us/txconst/sections/cn001600-005000.html

Section 50 (a) which says:
The homestead of a family, or of a single adult person, shall be, and is hereby protected from forced sale, for the payment of all debts except for:

My layman, non-lawyer interpretation of the above is that in Texas (and many other states as well) a homestead property is protected against forced sale with the exceptions being lien holders that have a security interest in the property who have a right to foreclose (mortgager, etc). However, an unsecured lien cannot force the sale of the property. The unsecured lien holder must wait around until the debtor sells, and at that time, whatever is left after the secured creditors (mortgager) gets paid is available to the unsecured creditor, up to the amount of the judgment. The key term is forced sale.

My grandparents learned this the hard way. They sold their house in NY that they had lived in for 30 years. The title company that handled the closing informed them that a local hospital had put a lien on their house 15 years before for an unpaid hospital bill. 15 years later, the hospital got paid!

The only way around this is to file for bankruptcy.


This little tidbit from the Bankruptcylawnetwork:

http://www.************************/...n-on-my-house/

Can A Credit Card Or Unsecured Debt Put A Lien On My House?

By Susanne Robicsek, North Carolina Bankruptcy Attorney on Feb 10, 2007 in General Bankruptcy Information

The short answer to this question is yes. A lien can mean that the creditor might be able to foreclose/sell the property to satisfy the unpaid debt. But each situation is different and whether or not YOUR debts can lead to a lien on YOUR house is determined by a number of factors, from what state you live in to how old the debt might be.

People often are confused and surprised when a debt that they did not agree to give any collateral to end up with a lien on property. Each state’s laws are different, but in general a creditor has the right to sue and try to be paid from property owned by the debtor.

To know whether or not property you own is at risk, talk to an attorney in your area who will explain who can sue you and what they can, or can not get from you if you are sued.

If your property is at risk, bankruptcy, either Chapter 7 or Chapter 13, may be able to help protect you from the debt.

[Txgirl]

Thanks so much.

[FU2MI]

No

[FU2MI]

That lawyer is WRONG.

According to a TX lawyer who answered a question very similar to yours on another internet forum, the answer is yes. See http://www.justanswer.com/questions/...as-lein-placed - scroll down to the answer provided by Travellawyer.

Of course, the answer is posted on the net, so its reliability could be suspect. There's really only one 100% reliable way to get an answer your question taking into account all your unique financial aspects and that's to get a TX lawyer who is representing you to answer it.

[FU2MI]

AND...some cool history...

The state of Texas is unique in its application of homestead protection. Although this protection is very substantial, it presents serious limits on the ability of a homeowner to mortgage his/her homestead.

The urban residential homestead consists of a lot or lots of 10 acres or less that is located within a city or town. There is no limit on the value of the land and its improvements entitled to homestead protection. Rather, what is defined as homestead is based solely on the size or acreage of the land involved.

The Texas homestead exemption began as protection for the wives and children of the early settlers in the event the man of the house was lured into a not-so-honest game of chance or decided he needed a few dollars more to continue a night out on the town. More seriously though, the wives and children of a deceased breadwinner were secure in their home(stead) and could not be removed because of some improper or manufactured claim of debt.



As a state constitutional protection, it has withstood the test of time and remained virtually unchanged as we have moved from the 19th century through most of the 20th century.

The practical protections of the homestead laws prevent any creditor (except for the mortgage holder, a taxing authority, or the holder of a note created for a home improvement loan) from forcing the sale of the homestead to satisfy nonpayment of a debt. It is difficult to "abandon" the homestead protection to borrow against its equity. An owner who wants to maintain property ownership and be able to borrow against its equity would have to move out of the property and demonstrate it is now being used as rental/income- producing real estate and that he or she has established a new homestead elsewhere.

It is interesting to note that home equity loans were not available in Texas until the constitution was amended, effective January 1998. Home equity loans in Texas involve numerous restrictions and requirements that may not exist for such loans made in other states. The amount of a home equity loan plus the balance of the first mortgage may not exceed 80% of the value of the property, thus leaving a 20% equity cushion at the time of the second lien.

[Pizza]

No

If it isn't too much trouble can you show me the source of this information? I have read many places that NO unsecured creditors - credit cards, hospitals, etc. can place a lien on a house in the state of Texas. But there are also a lot of people assuming that they can do this and they may be giving very bad advice to Texans who fear liens against property.

I would love to see this information verified. It sounds correct. Thank you.

[FU2MI]

Sure.

http://www.articlesbase.com/finance-articles/what-does-the-texas-homestead-exemption-protect-231484.html

This is one article i found...just have to google it and weed through the lesser-knowing articles.

If it isn't too much trouble can you show me the source of this information? I have read many places that NO unsecured creditors - credit cards, hospitals, etc. can place a lien on a house in the state of Texas. But there are also a lot of people assuming that they can do this and they may be giving very bad advice to Texans who fear liens against property.

I would love to see this information verified. It sounds correct. Thank you.

[FU2MI]

This is probably the best...

http://www.professorbeyer.com/Articles/Homestead.htm

[Pizza]

Thank you for the information. Much appreciated.

Sorry for the late response.