A Texas homeowner converts their homestead into a rental property and moves to another state. After two years, a creditor seeks to foreclose on the former homestead for an unpaid business debt. Under Texas law, can the creditor force the sale?
Correct Answer
A) Yes, because the homeowner abandoned the homestead by moving to another state and converting it to a rental, and homestead protection no longer applies
Under Texas Property Code §41.004, homestead protection ceases upon abandonment. Moving to another state and converting the property to a rental demonstrates both physical departure and intent not to return as the primary residence. Once the homestead is abandoned, the property loses its exemption from forced sale for general debts.
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A Texas homeowner operates a home-based business from a portion of their urban homestead. Under Texas homestead law, does the business use affect the homestead protection?