What is a homestead exemption in a foreclosure?

A homestead exemption in a foreclosure is a law that protects a homeowner’s equity in their home from creditors and foreclosure proceedings. In Washington, a homestead exemption is a legal right that restricts the amount of a homeowner’s equity that creditors can take in a foreclosure. This right is usually limited to $125,000 of a homeowner’s equity. In addition, the homestead exemption law can also protect a homeowner’s home from seizure by creditors in order to satisfy a debt. The law provides that if the homeowner’s equity is less than $125,000, the home cannot be seized by creditors. However, if the homeowner’s equity is more than $125,000, creditors may be able to seize a portion of the homeowner’s equity to satisfy the debt. If a creditor attempts to foreclose on a home with a homestead exemption, the homeowner may have the legal right to defend themselves against the foreclosure proceedings and any seizure of their equity.

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What is a homestead exemption in a foreclosure?

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