I am a bit confused about equity… Do you have an equity only during a mortgage or can your home have an equity when it is paid off already? I bought my home for $400K and now it is worth around $550K. The house has no mortgage anymore… It's paid off a few years ago, so is there an equity on it or not? I am using my own case to see if equity applies to me. Im not looking to borrow money from a bank or get another mortgage, the question is simply pertaining to my situation only to know if my paid off home, although with a different value today than what i bought it from before inc ash, has any equity or not as I am a bit confused with thee terminology when it applies to my situation.
Second question… Can a judgement from a credit foreclose my home when it is paid off or does foreclosure happen to the homes which have a mortgage/loan from a bank? Can I be forced to sell my home by a creditor in California
Added (1). I am currently in dire financial situation with creditor & I was threatened to be sued & although my house is in revocable trust where I am the decision maker, I heard that revocable trust doesn't protect the house from liens/judgements from court/by creditors whatsoever so I wanted to know what specifically would protect my home from a creditors/judgement? Which option should I pick? I heard of an LLC creation but I am not a business owner. I'd love to get some help with these 3 questions please
Read more: Does paid-off home has equity?
