Unfortunately, in Washington State, our homestead exemption does not apply to mortgages that are taken out on your home. The homestead exemption serves to protect the equity in your house when you file bankruptcy to deal with ‘unsecured’ debt like credit cards and medical bills.

On the positive side, on May 11, 2007 a Washington State bill - House Bill 1805 - was signed that increased the amount of the state homestead exemption against creditors from $40,000 to $125,000.