US Legal Forms
Legal Resources
Questions & Answers
Real Property
Can a bank take both homes if we lose our business?

Can a bank take both homes if we lose our business?

Q: Can you claim homestead exemption on two homes in different states?

Generally, you can only claim a homestead exemption on one primary residence at a time. Each state has its own rules regarding homestead exemptions, and typically, you must live in the home to qualify. If you have homes in different states, you need to choose which one to designate as your homestead for exemption purposes.

Q: Can you have two residences on the same property?

Yes, you can have two residences on the same property, such as a main house and a guest house. However, for homestead exemption purposes, typically only one residence can be designated as your homestead. The homestead exemption applies to the primary dwelling where you reside, so you need to choose which one qualifies.

Q: Why do I not qualify for homestead tax credit?

You may not qualify for a homestead tax credit for several reasons, including not meeting residency requirements, not owning the property, or exceeding income limits set by your state. Each state has specific criteria for eligibility, so it's essential to review those requirements to understand why you might not qualify.

Full question:

We have 2 homes; the one we live in is homesteaded. We are self employed. If we lose our business, can the bank take both homes or just the one that is non-homestead? We heard that the house has be be at a minium value for them to go after it. What is the law?

Category: Real Property
Subcategory: Homestead
Date: 04/07/2025
State: Minnesota

Answer:

Homestead laws vary by state and generally protect a portion of a debtor's property from creditors. In many states, including Minnesota, a homestead is the house and land where the debtor lives, making it exempt from seizure for most debts, except for certain exceptions like construction-related debts.

In Minnesota, if a creditor wants to execute a sale on property that includes a homestead, they must obtain a court order. The court must determine whether the property is a homestead, the amount of the homestead exemption, and if the property's fair market value exceeds the exemption plus any existing encumbrances (Minn. Stat. § 550.175).

If the court finds that the homestead value exceeds the exemption, they may order the sale of the property, including the homestead. However, if the homestead is designated correctly and its value does not exceed the exemption, it may be protected from creditors.

Therefore, if you lose your business, the bank can only pursue the non-homestead property. The homesteaded property is generally protected unless specific conditions allow otherwise.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

Is homestead exemption based on income?

No, the homestead exemption is not based on income. Instead, it is determined by the property you own and your residency status. The exemption protects a portion of your home's value from creditors, regardless of your income level. However, some states may have specific eligibility criteria related to age or disability that could indirectly involve income considerations. Always check your state's laws for detailed information.

Can you claim homestead exemption on two homes in different states?

Who qualifies for the North Carolina homestead exemption?

In North Carolina, to qualify for the homestead exemption, you must be a permanent resident of the state and own the property. Additionally, you must meet certain age, disability, or income requirements. For example, homeowners aged 65 or older or those who are permanently disabled may qualify for an exemption on the first $25,000 of their property's value. Check local regulations for specific details.

Can you have two residences on the same property?

What does a homestead protect you from in California?

In California, a homestead provides protection from certain creditors, meaning that your primary residence is shielded from seizure in most cases of debt collection. However, this protection does not apply to all debts, such as mortgage obligations, property taxes, or certain court judgments. The amount of protection can vary based on the property's value and the specific circumstances.

Why do I not qualify for homestead tax credit?

Find a legal form that suits your needs

Browse our library of 85,000+ state-specific legal templates.

This field is required

Can a bank pursue my other property if my home is foreclosed?

Can the homestead act protect us from foreclosure?

Can Wells Fargo pursue my Michigan property after foreclosure in Las Vegas?

Can a bank pursue my Montana property if I face foreclosure in Washington?

What are my responsibilities for a home equity loan during foreclosure?