Can a Declaration of Homestead Stop Foreclosure?

Foreclosure on your property doesn’t automatically mean that you will lose your homestead. There are options for each and every homeowner to consider, including a declaration of homestead.

If you are facing foreclosure on your property, you will probably be looking at all options that may save your property from foreclosure. You need to consider all the ways you may stop foreclosure. A declaration of homestead may be one of those ways to stop foreclosure.

 You can seek means to keep the property, and pay off your debt. You can sell the property to a friend, or relative. You can sell the property to a third party, and perhaps arrange to still live on the property if you sell to a professional property buying company. Pick a major creditor and sign the property over to that creditor. You could just let the foreclosure sale go through.

What kinds of property can be declared a homestead?

The types of property that may be declared a homestead are: a dwelling and other outbuildings, a condo unit or even a mobile home. 


Can a declaration of homestead stop foreclosure on all houses?

The answer to that is – maybe. If you declare your house a homestead, you protect yourself to a certain extent from foreclosure. But this only works up to the first $125,000 you have invested in your property. If your home is valued at less than $125,000 it will not be sold to satisfy a debt, provided the title to the property must be established

If your property is worth more than $125,000 a court may decide that all or a portion of your property has to be sold of in order to settle your debts. So can a declaration of homestead stop foreclosure? – It depends what you owe and what your property is worth.

It protects a person with less money invested in their property, and for those with more money than that invested in a property, a declaration of homestead allows you to keep the first $125,000 from any sale of that property, so you should not be rendered homeless as you will have that money with which to purchase another home.


A declaration of homestead will not stop foreclosure in certain circumstances. The first of these is if you owe taxes. Your home may have to be sold off to pay these, as it may if you owe money on the mortgage or other loan with which to buy the property or refinance it and pay for improvements to that property.

You may wonder can a declaration of homestead stop foreclosure if you are indebted to pay for a mechanic or someone to make the improvements upon your home. No! You can still lose your home to repossession in these cases and a declaration of homestead will not help you.

If you accept a lien agreeing to take the property subject to codes or any other covenants or deed restrictions, a declaration of homestead will not sto[p foreclosure.
Therefore, to answer to the question of ‘can a declaration of homestead stop foreclosure?’ is that is can do so in certain circumstances. However, your security of your home ownership depends upon how much money you owe, and to whom, and how much your property is worth.