Question

A valid recorded homestead will not protect the homeowner against a foreclosure of:

Selections

A. A mortgage

B. A trust deed

C. A mechanic’s lien

D. Any of the above

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Answer: D

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5 Keys Summary

• Homestead protection does not defend against secured debts or specific liens against the property itself, which is why “Any of the above” (mortgage, trust deed, or mechanic’s lien) is the correct answer regarding foreclosures.

• Mortgages and trust deeds are voluntary security instruments where the homeowner pledges property as collateral for a loan, and homestead protection explicitly does not apply to these secured debts, allowing lenders to foreclose upon default.

• Mechanic’s liens are specific legal claims placed on property by those who provided labor or materials and were not paid, and homestead protection also does not protect against these liens, which can lead to foreclosure.

• While homestead protection safeguards a portion of a homeowner’s equity from unsecured debts (like credit card judgments), it offers no defense against creditors holding a direct security interest in the property.

• In essence, a homestead protects against general creditors but not against specific creditors whose claims are directly tied to the property itself through voluntary agreements (like loans) or statutory rights (like mechanic’s liens).

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