The Arizona Supreme Court Confirms that Judgment Liens Attach to Homestead Property

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Snell & WilmerThe 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.

A few prior decisions held that a judgment could NOT recover any proceeds from the sale or foreclosure of a homestead property. See In re Rand, and Pac. W. Bank v. Castleton. These decisions are now effectively overruled.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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