Homestead exemption won't protect owner from nonjudicial foreclosure

Question: What is a homestead exemption, how much is it for and what does it do? My sister owns a detached single-family home in a common interest development and has a homestead exemption. She told me to do the same on my condominium. Can I put the exemption on my condo? If the association tries to nonjudicially foreclose on me, will the homestead exemption protect me?

Answer: Simply, a "homestead" is your home. Although the equity in your home may be available to your creditors, many states, including California, provide for a "homestead exemption" as a way of protecting some, or all, of your equity.

Property subject to a...