What the Homestead Exemption Actually Blocks
If you own a home and a creditor obtains a judgment against you, the homestead exemption can prevent a forced sale of your residence. The protection applies to the equity in your home up to the amount set by A.R.S. 33-1101. But this protection is not absolute. The law carves out several situations where a creditor can still reach your home, whether it is a house, condominium or cooperative, or mobile home.
Real property that is subject to the homestead exemption provided for in section 33-1101, subsection A is exempt from involuntary sale under a judgment or lien, except in connection with: 1. A consensual lien, including a mortgage or deed of trust, or contract of conveyance. 2. A lien for labor or materials claimed pursuant to section 33-981.
A.R.S. § 33-1103(A)(1)-(2)A mortgage or deed of trust is a consensual lien, meaning you agreed to it. The homestead exemption never blocks your lender from foreclosing. Contractors who performed work on your home can also enforce a mechanics' lien regardless of the exemption.
Child Support, Spousal Maintenance, and Excess Equity
Two more exceptions deserve close attention. First, child support and spousal maintenance arrearages can reach homestead property. This applies once those arrearages have been reduced to a judgment, a lien exists under A.R.S. 25-516, or the court orders a specific security interest.
A recorded civil judgment or other nonconsensual lien that is not otherwise prescribed in this subsection if the debtor's equity in the real property exceeds the homestead exemption under section 33-1101.
A.R.S. § 33-1103(A)(4)If the equity in your home exceeds the homestead exemption amount, a judgment creditor may force a sale. The homestead amount is paid to you first. The excess goes toward satisfying the judgment. For families carrying significant home equity, understanding this threshold is critical to protecting your residence.
How This Affects Families
The homestead exemption automatically attaches to the home where a person resides. If a person establishes a new homestead after selling a previous home, the protection carries over to identifiable cash proceeds for up to 18 months. This gives families time to relocate without losing protection.
Families should also understand that cost of living adjustments apply to the exemption amount starting in 2024. As home values rise, the exemption adjusts to keep pace. If a family establishes a new homestead after a sale, the adjusted amount applies to the new property. This is an important protection for families in areas where home values are increasing quickly.