Section 2.27 Setting Off the Exempt Homestead and Sale of the Surplus

• Library: Creditors' Remedies (2009 Ed. + 2014 Supp)

7. (§2.27) Setting Off the Exempt Homestead and Sale of the Surplus

When there is a surplus in value of the judgment debtor's equity in the homestead above the amount allowed by statute, a judgment lien attaches to the surplus. White v. Spencer, 117 S.W. 20 (Mo. banc 1909). After the appraisers have determined that the homestead exceeds the statutory value limitation, the judgment lien attaches to the surplus, which may then be subjected to the satisfaction of the judgment. The lien on the excess is effective before levy if judgment lien requirements have been met. A sale by the judgment debtor of the excess before levy subjects the excess transferred to the judgment lien notwithstanding the homestead exemption.

When the appraisers are able to set off the surplus value by severance of part of the land, no particular problem presents itself. The sheriff then proceeds to advertise and sell the surplus at execution sale. When the land and improvements exceed the value allowed as exempt and a...