What exactly is Homestead Exemption ?

When your house is "homesteaded" (in other words, it's where you actually live), your property taxes are SIGNIFICANTLY lower. Fill out the paperwork. Generally, once you fill out the paperwork, you don;t have to do it again.

 

What bobrek said. I could find you the legalese version, but basically, file for the exemption (only once is necessary) and your taxes will be much lower.

 

Isn't that where we get two mules and 40 acres?

 

Check here :

http://www.hcad.org/Exemptions/Homeowners.asp

 

nah, that's a different story altogether.

 

I believe the first $50,000 of your primary residence (homestead) is exempt from property taxes. In other words, if you have a $100,000 property, your taxes are cut in half.

 

In Texas there is also homestead protection in the event of bankruptcy. There are only 4 ways you can be forced to sell your homestead (or have a judge sell it for you):
1) Delinquent mortgage.
2) Delinquent taxes
3) Materialman's lien
4) Delinquent home equity loan

In other words...so long as all of the above 4 are being paid faithfully, in general your homestead will be protected in the event you have to file for bankruptcy protection.

As always...please consult a lawyer regarding your circumstances now or in the future. I post this as general information not to be used as a basis for your legal decisionmaking.

 

look at that disclaimer!!! that's a beauty!!!

 

I figured you'd like that...but use it without permission and I'll sue your a$$.

 

And it was only one mule.