Last week I posted a video about the Homestead Exemption. Afterwards, lots of folks asked me if they qualify for it. In order to determine that, you first have to calculate your home equity.
But how do you do that?
It’s as easy as 1, 2, 3!
1. Determine your home’s value;
2. Add up all the liens on your home; and
3. Subtract the total liens from the value.
If that figure is positive, you have equity in your home. If it is negative, that means you are underwater.
Here is a quick example:
Home Value: $400,000.00
Less Mortgage of $200,000.00 and Judgment Lien of $14,000.00
Equals: $186,000.00 of positive Home Equity
Once you perform this calculation on your own home, you can contact me for a free consultation to determine if you qualify for Bankruptcy and the new Homestead Exemption.