1. Opt for a Homestead Exemption
A homestead exemption is basically a legal mandate that guards homeowners from property taxes, creditors, and specific circumstances (the death of the homeowner’s spouse for example). This statutory exemption is available in most U.S. states, however it’s best to check the state you live in.
Wondering why you should opt for a homestead exemption? Well… in case of a lawsuit with a creditor, you’ll most likely be forced to sell your home. After the transaction, the creditor will receive only what’s left after fees, the mortgage balance, and your homestead exemption amount.
