A judgment creditor is threatening to force a sale of your house. California's homestead exemption may protect $300,000 to over $600,000 in equity - automatically, without filing anything.
Under CCP 704.730, California provides an automatic homestead exemption that protects equity in your primary residence from judgment creditors - without you having to file anything.
The exemption amount depends on the median sale price of single-family homes in your county. As of 2024, exemption amounts range from approximately $300,000 to over $600,000 in high-cost counties like San Francisco, Santa Clara, and Los Angeles.
The 2020 changes to California's homestead exemption law tie the amount to county median home prices:
Before 2021, California's homestead exemption ranged from $75,000 to $175,000. The new law dramatically increased protection, making forced home sales by judgment creditors much less common. If your home has less than $600K in equity, it's likely fully protected.
A judgment creditor can record an abstract of judgment against your property, creating a lien. But having a lien doesn't mean they can force a sale. Under the homestead exemption, they can only force a sale if:
Assume your home is worth $900,000:
Since your home is only worth $900,000 but $963,000 would need to be paid first, there's nothing left for the creditor. They cannot force a sale.
Even when the creditor can't force a sale, their judgment lien remains on your property. If you voluntarily sell or refinance, the lien must be paid off from the proceeds (after the homestead exemption). The lien also accrues 10% annual interest.
California has two types of homestead protection. Understanding the difference matters when you're selling your home or facing execution.
If you plan to sell your home voluntarily, file a declared homestead declaration first. Without it, your exempt proceeds could be grabbed by creditors during the period between selling and buying a new home. The automatic homestead only protects you from forced sales, not voluntary ones.
The homestead exemption is powerful, but it has significant limitations. It does NOT protect your home from:
Child support and spousal support judgments can force a sale of your home regardless of the homestead exemption. California policy prioritizes supporting families over protecting debtors. If you owe significant support arrears, your home may not be safe.
No. The homestead exemption only protects your principal dwelling - the place where you actually live. Rental properties, vacation homes, and investment real estate have no homestead protection. Creditors can force sale of non-primary residences regardless of your equity position.
Yes, under certain circumstances. If a mobile home or houseboat is your principal dwelling, it can qualify for homestead protection under CCP 704.710. The mobile home must be fixed to land you own, or be in a mobile home park where you rent the space. Houseboats have special requirements.
If you move out and the property is no longer your principal residence, you lose the automatic homestead protection. Creditors can then force a sale. However, temporary absences (like extended travel, medical stays, or military deployment) don't necessarily destroy homestead protection if you intend to return.
No. The homestead exemption is per-dwelling, not per-person. A married couple living together gets one exemption amount for their home. However, if the judgment is only against one spouse and the home is jointly owned, different rules may apply - the non-debtor spouse's interest may be protected separately.
Yes, and this is a real strategy. If home values rise faster than the homestead exemption amount increases, eventually there may be enough equity above the exemption for a forced sale to make sense. The judgment lien sits there, accruing 10% annual interest, waiting. California judgments last 10 years and can be renewed.
It's inexpensive insurance. Recording a declared homestead costs about $25-50 and puts creditors on notice that you know your rights. More importantly, if circumstances change and you need to sell quickly, the declared homestead is already in place to protect your proceeds. There's little downside to filing one.
I help California homeowners understand their homestead protection and fight improper forced sale attempts. Let's review your situation and make sure your home is protected.