AZ HB2297

Amends Arizona law to prohibit judgment liens from attaching to homestead property, except when the debtor's equity exceeds the $250,000 homestead exemption amount under section 33-1103.

Judgment liens recorded before January 1, 2022 remain enforceable on homestead properties for sales or refinances completed on or after that date, but are subordinate to consensual liens that existed on or before December 31, 2021.

Establishes a process allowing title insurers to record notices of partial release of judgment liens on homestead property when the anticipated payment to the judgment debtor is at least 80% of the homestead exemption, with a 20-day notice period for judgment creditors to object.

Requires judgment creditors to be paid in full from cash proceeds when homestead property is refinanced, except for costs directly associated with refinancing or payments to senior lienholders.

Clarifies that homestead exemptions do not attach to cash proceeds from refinancing homestead property, and allows parties to rely on final closing documents to determine property equity for these purposes.