Why Is Homestead Exemption Important During Foreclosure
Judgment lien exemption laws apply to forced collections, not voluntary sales. If one forces the sale of the property, which is legal with a judgment, one does not get paid until after the 1st mortgage is paid off in full, then the homeowner gets their homestead exemption amount deducted based on the state the property is located within, then anyone who recorded a lien ahead of you is paid. If there’s enough equity in the property, the lien will get paid off. It should be noted that anyone with enough equity in their home typically won’t let it be sold involuntarily.
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