Sweet v. O'Leary

— The homestead exemption creates an interest in property that attaches to the surplus proceeds from a nonjudicial foreclosure sale under a deed of trust such that a judgment creditor’s claim is limited to funds in excess of the homestead, if any. The trial court’s determination to the contrary is reversed.

This appeal arises from disbursement of surplus funds from a nonjudicial foreclosure sale of the home of G. Michael and Louise S. Sweet. The sale was held on the deed of trust against the Sweets’ property. The deed of trust was granted by the Sweets to the primary lender, Seattle First…