In Florida, their Constitution exempts homestead property from levy and execution by most judgment creditors. This means that a creditor cannot place a lien against or force the sale of your homestead to satisfy an obligation or monetary judgment. In Arizona, not so much. Ours is capped at $150,000.00

The Arizona Supreme Court recently clarified that a judgment lien does, in fact, attach to the proceeds of the sale of a homestead property. See In re McLauchlan. In sum, if the sale of a home produces more than the homestead exemption amount, then a judgment creditor can collect from those excess sale proceeds. Good news for banks and plaintiffs. Bad for the wrong end of a judgment lien. Call Bill at 602.319.6899 if you want to discuss the ramification of the McLauchlan case.

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