Executing a homestead form can protect your principal residence (the house where you live) from being seized and sold in the event that a money judgement is entered against you by a court. A homestead allows you to protect a certain amount of equity in your property. Equity is the amount your house is worth, minus what you owe on the mortgage. The amount of equity allowed varies according to state.
A homestead form, after being signed and notarized, should be “recorded” (filed) in the land records office in the county where the property is located. This office goes by different names in different states; it’s usually called the County Recorder’s Office, Land Registry Office or Register of Deeds.
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