Enforcement of money judgments: execution: homestead.

Existing law authorizes a judgment creditor to enforce a money judgment obtained in a civil action by obtaining a writ of execution that allows the creditor to levy on property of the judgment debtor and obtain satisfaction of the judgment by, among other things, a sale of the property. Existing law generally provides that all property of the judgment debtor is subject to execution, with specified exceptions. Existing law authorizes a judgment debtor to protect a specified amount of the judgment debtor's equity in the debtor's principal dwelling by claiming a homestead exemption in that property. Existing law requires a judgment creditor who has levied on a judgment debtor's dwelling to apply to the court for a sale of the dwelling, and specifies the contents of that application. This bill would prohibit a sale under execution of a judgment lien of a judgment debtor's principal place of residence based on a consumer debt unless that debt was secured by that principal place of residence at the time it was incurred. The bill would exempt specified forms of debt from this prohibition, including debts owed to financial institutions, as specified, if the amount of the original judgment on which the lien is based, when entered, and the amount owed on the outstanding judgment at the time of execution on the judgment lien, are greater than $75,000, as adjusted for inflation by the Judicial Council. The bill would require a judgment creditor's application for sale of a dwelling to include a statement that the judgment on which the execution sale is based was secured by the debtor's principal place of residence at the time it was incurred or a statement indicating which exemption is applicable.