Florida Homestead exemption
The Florida Homestead Exemption is unique to Florida. No other state has an unlimited exemption of this magnitude. Pursuant to this exemption (per the State Constitution), no creditor (other than a creditor with respect to the residence such as a mortgage) can judicially compel the sale of the residence to satisfy a debt. So, if a residence is worth $1,000,000 subject to a $200,000 mortgage, there is $800,000 of equity in the residence. Therefore, a homeowner with a lot of debt could remain in the residence and when the statute of limitations with respect to debt expires, he or she could sell the house and pocket $800,000.
- Discuss the pros and cons of the Florida Homestead exemption.
- Consider to what extent the protection of a home outweighs or does not outweigh the obligation of an individual to pay his or her debts.
Although there may be some overlap, make sure that you address each question separately. Extra credit is a possibility if your response is extremely well thought out and is based on facts not simply how you feel about the issue.
