Property Ownership
A Florida homeowner's real estate is protected from forced sale by creditors under the homestead exemption. Which of the following creditors CAN force sale of the homestead?
ACredit card companies
BMortgage lenders and holders of mechanics' liens on the homestead improvements✓ Correct
CMedical debt collectors
DAutomobile lenders
Explanation
Florida's homestead exemption protects against most unsecured creditors. However, it does NOT protect against: (1) mortgage lenders who hold a valid mortgage on the homestead, (2) mechanics' liens for improvement work on the property, or (3) property tax liens.
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Key Terms to Know
Lien
A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Short SaleA sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
Math Concepts
State-Specific Concepts
Homestead Exemption
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