You need to know – Foreclosures and Homestead Law

YouNeedToKnowWeb500A student asked if a homestead property can be lost in a foreclosure action

To answer this question we need to understand the 2 elements of homestead law in Florida

1 – The Florida Constitutional Homestead provisions provide protection to state residents for qualifying homes

2 – The Statutory Homestead Tax Exemption is a completely different set of legislation and should not be confused with the Constitutional provisions

(Of course you know that the statutory homestead law provides certain exemptions from property taxes…)

Under the constitution, a homestead property cannot be the subject of a forced sale, subject to certain exemptions

There are 2 exemptions that are relevant to your real estate studies:

  • foreclosure following a mortgage loan default
  • an action relating to a mechanics lien

So, you can lose a homestead property through a foreclosure

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