Washington's homestead exemption does not protect against foreclosures of voluntary liens.

Washington’s homestead exemption has received recent attention due to its significant increase.  The amount went from a fixed $125k to a variable amount based on the county’s medium sale price for single family homes.  RCW 6.13.030. 

There is often confusion, including among practitioners, as to the scope of the homestead exemption.  Generally, the homestead exemption protects only against execution and levy by a judgment lien creditor (in other words, the holder of an unsecured debt who has reduced the debt to judgment).  The homestead exemption statute, at RCW 6.13.080, enumerates foreclosure-types where the protection does not apply.  This includes foreclosures of voluntarily liens such a deed of trust or mortgage.

Homeowners voluntarily encumbering their residence should understand they will receive no homestead protection in the event of a default and foreclosure.  Similarly, those extending credit should understand that, without a voluntarily lien, execution against the borrower’s Washington residence will be unlikely in the event of a default.