What is this Texas Homestead law?12/18/2008 12:00:00 PM
The Texas Constitution says a homeowner cannot lose his homestead under a foreclosure sale to satisfy creditors. Stephen F. Austin passed the first homestead laws to protect women and children back in the Wild West days when men gambled in saloons and “lost the homestead,” says Kelly Logsdon Rush, an Ebby Halliday realtor and instructor at Champions School of Real Estate.
Texas is one of five states with such protection, but there are also five exceptions: your home can be foreclosed on by the lender or mortgagee for non-payment of the mortgage. The county and feds can also force the sale of your home for non-payment of taxes, property and federal. Mechanics and Materialman liens—which a contractor or sub-contractor can file for non-payment of work or materials—can also result in foreclosure, as can non-payment of Homeowner’s Association fees. Redemption periods apply. But your home is fairly safe from those collectors at Mastercard.