thanks for the explanation... what exactly is Patrick giving up here and when, whatcircumstances is Patrick waiving any homestead property rights. This needs tobe spelled out better. Along with homestead is Patrick giving up homesteadexemptions as well? It's generally believed that Patrick is giving up too much with this statementand thus could lead to cancellation of the loan. This has not been spelled out clearlyin the documents.
The homestead exemption is a legal regime designed to protect the value of the homes of residents from property taxes
, creditors, and circumstances arising from the death of the homeowner
spouse.Homestead exemption laws typically have four primary features:
1.They prevent the forced sale of a home to meet the demands of creditors (however, in most cases homestead exemptions do not apply to forced sales to satisfy mortgages
, mechanics liens
, or sales to pay property taxes);
2.They provide the surviving spouse with shelter;
3.They provide an exemption from property taxes which can be applied to a home.
4.Allows a tax-exempt homeowner to vote on property tax increases to homeowners over the threshold via bond or millage requests.For purposes of these statutes, a homestead is the one primary residence of a person, and no other exemption can be claimed on any other property anywhere, even outside the boundaries of the jurisdiction where the exemption is claimed.In some states, homestead protection is automatic. In many states, however, homeowner will not receive the protections of the law until they file a claim for homestead exemption with the state. Furthermore, the protection can be lost if the homeowner abandons the protected property by taking up primary residence elsewhere.Immunity from forced saleDifferent jurisdictions provide different degrees of protection under homestead exemption laws. Some only protect property up to a certain value, while others are limited by acreage limitations. If homesteads exceeds these limits creditors may still force the sale while the homesteader may keep a certain amount of the proceeds of the sale.Property tax exemption-- MY GUESS THIS DOES NOT APPLYA homestead exemption is most often only on a fixed monetary amount, such as the first $50,000 of the assessed value. The remainder is taxed at the normal rate. In that case, a home valued at $150,000 would then only be taxed on $100,000; a home valued at $75,000 would be taxed only on $25,000.The exemption is generally intended to make the property tax a progressive tax. In some places, the exemption is paid for with a local or state (or equivalent unit) sales tax.IN SHORT, Looking for a document that clarifies this waiver, better defines the waiver, a document of understanding that they would accept as well. Spelling out what you just said considering this reply.