Property Ownership

An Oregon homeowner's 'homestead exemption' provides:

AAn exemption from property taxes on the first $25,000 of assessed value
BProtection of a limited amount of home equity from general creditors in bankruptcy proceedings✓ Correct
CAn automatic right to expand the home without permits
DA reduced commission rate when selling through a licensed broker

Explanation

Oregon's homestead exemption (ORS 18.395) protects up to $40,000 of equity in an owner's primary residence from execution by general creditors. (The amount can vary and may be updated by the legislature.) This means creditors with unsecured judgments cannot force the sale of a homestead if the equity is within the exempt amount. It does NOT exempt the property from mortgage foreclosure or property tax liens.

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