In California , a homestead gives protection against involuntary claims against an owner's home. A common misrepresentation is that a recorded Homestead Declaration protects against enforcement measures by all creditors. In fact, filing a Homestead Declaration does not protect against secured creditors -- such as the lender who has financed the original purchase, or a lender who extended a second mortgage loan, or to a contractor, subcontractor or laborer who has filed a valid claim of mechanic's lien.

Homeowners who are in financial trouble, or those who expect that they may encounter financial trouble, should consult an attorney for advice on how to protect their home. Please note that some lenders require the removal of a Homestead Declaration before a home loan can be approved.

How Do I File a Homestead Declaration?

To file a Homestead Declaration, a one-page document must be filed in the County Recorder 's office where the property is located. The law states that the Homestead Declaration must be recorded in the appropriate county within 10 days after it is signed before a notary public. The law limits the fee that can be charged for the service to $25, including notary and recording fees. The fee may not even be requested until after the Homestead Declaration is recorded. This may mean that the amount that a consumer pays for a homestead declaration will be paid to a third-party "escrow," who will disburse the money to the homestead filing service provider only after the homestead is recorded. You may only declare a homestead on your principal place of residence.