Texas Homestead Regulation

Texas has some of the strictest regulations in regards to a borrowers homestead in the nation.

What Is A Homestead

A homestead is a a person’s or family’s residence, which comprises the land, house, and outbuildings.

When there are judgments on a Texas Homestead for a homeowners primary residence a creditor must execute a partial release of lien. This rule does not apply Homeowner Association liens. Overall this rule can be very beneficial to a sale of property that has additional judgments on title. This is because potentially no parties will be required to bring funds to have a judgment released on a homeowners primary residence prior to the sale of the property. This information will come in very handy for anyone who is processing short sale transactions in Texas. In many other states judgment holders can throw curve balls in a transaction as they will require funds to release the lien. At times coming up with funds to settle a judgment an be very difficult and they may not entertain a partial release of lien.

For more information about this check out this link about judgments and Texas Homestead.

If you have any questions or need assistance with anything short sale related please fill out the form below:

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