Hello Mario, A homestead doesn't stop creditors from applying liens on your property but only protects your home from you having to sell it to pay the liens. When you do sell or refinance, any liens will be paid at that time... In California, you are automatically protected under homestead up to $45,000 or so the last time I checked. You can fill out the form and have it recorded yourself. There is a small recording fee of $25.00 and here is the form and a little information regarding Homestead.
Sheryl Arndt, Real Estate Broker â€“ Sr. Loan Officer CA only
REO & Short Sale Specialist
20+ Years Experience