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If you are sued by a creditor, the chances the judgment becomes a lien and that lien forces a sale of a home is rare.
in terms of home equity, the balance left of the equity line, has to be subtracted from the equity to calculate the actual equity of the home,
if the 150,000 is the line and only 10,000 was used only 10,000 is subtracted from the equity.
If the home equity is high and if there are no other assets, would creditor still force the sale of the primary home?
Regarding the equity line of credit, how would the creditor know what's the balance used up? I have a 150K HELOC and am thinking of refinancing and taking a higher HELOC - 250K so that the home equity gets reduced and could prevent the sale of the home by the creditor, Is this a good idea or not?
Though there's no danger of getting sued, I would still try to protect assets as much as possible.
What's the homestead amount for a primary home in California?
I assume this can be subtracted from the home equity.
I have already put the home into an revocable trust. But I heard that this won't offer any protection.
Do you know how much is the homestead coverage in California?
Myself, my wife, my son (who is over 21 years) and my 17 year old daughter live in the house.
I am sorry my last response didn't get posted.
I was asking if it's worth obtaining a declared homestead.
If so, what's the process and how much would it cost?
Does it have to be renewed often?
If the primary home is in a revocable trust, do I need to take the home out of the trust before I file homestead declaration?
Where can I find any good company that offers the homestead declaration services?
Thanks for all the info on the homestead declaration.
One final question on the HELOC. If I would like to reduce the equity on the primary, do you recommend taking out the cash advance for the full balance? If I do that wouldn't the cash become an easy target to the creditors, in case of a lawsuit?
I do have an LLC with just 2 members - myself and my wife. This LLC was incorporated in California. Would this offer full protection against would be creditors?
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