The $503,000 Mistake That Almost Cost Nicki Minaj Her Mansion

BREAKING UPDATE (January 24, 2026): As predicted, the debt was satisfied at the “one-yard line.” The Los Angeles Superior Court confirmed that the $503,318 judgment against Kenneth Petty was paid in full on January 22, 2026—just hours before Judge Cindy Pánuco would have signed the final order authorizing the forced sale of property in California. The Hidden Hills mansion remains in Nicki Minaj‘s possession.

Forced sale of property California 2026: My paralegal stuck her head in my office last January and said, “Did you see the Nicki Minaj thing?”

I hadn’t. Turns out a judge in Los Angeles was about to sign off on a forced sale of property in California—specifically, Minaj’s Hidden Hills estate, all $20 million of it—to satisfy a $503,000 judgment her husband Kenneth Petty owed to a security guard he’d roughed up in Germany.

The payment came through hours before the gavel dropped.

I’ve watched a lot of close calls in twenty years of real estate practice. This wasn’t just close. This was someone with a nine-figure net worth who nearly learned the hard way that California doesn’t care how rich you are. You owe money? You’ve got equity? The court can sell your house.

Period.

So my phone started blowing up. Clients who suddenly remembered they had that pending lawsuit from 2023. Business owners who’d been dodging a default judgment. Regular folks who thought their home was untouchable.

Let me walk you through what actually happens when creditors come after your house in California, because the Minaj case is the best teaching moment I’ve seen in years.

What Went Wrong in Hidden Hills

Kenneth Petty got into a fight with Thomas Weidenmuller at a concert in Frankfurt back in 2019. Broken jaw, surgeries, metal plates—bad situation all around.

Weidenmuller sued in LA County in January 2022. Asked for over $700,000.

And then… nothing. No response from Petty. No response from Minaj. No attorney showed up. Nobody filed an answer.

You know what happens when you blow off a lawsuit? Default judgment. Judge Cindy Pánuco gave Weidenmuller his $503,318 in March 2024.

Still nothing.

Weidenmuller’s lawyer tried garnishing wages. Tried hitting up various companies that might owe the couple money. Seven different attempts to grab cash. All failed.

So they went nuclear: Writ of Execution on the Hidden Hills property.

That house is titled solely in Minaj’s name, but California’s a community property state. Petty’s debt becomes her problem when it attaches to community assets. The house had about $6.7 million in equity after the mortgage ($20 million value, $13.3 million owed to the bank).

Do the math. Even after carving out California’s 2026 homestead exemption of roughly $722,151 for Los Angeles County, there’s still over $6 million sitting there. More than enough to pay Weidenmuller and the growing pile of fees and interest.

Judge Pánuco scheduled a hearing for November 2025. She indicated her tentative was to authorize the sale. She just needed some final mortgage documentation from Bank of America.

The next hearing? January 22, 2026.

Payment showed up right before that hearing. Crisis averted. Barely.

Understanding Forced Sale of Property California Laws

I need to be blunt here. Your house can be sold to pay your debts. Full stop.

California has a homestead exemption that protects some of your equity—more on that in a minute—but if you’ve got equity beyond that protection and you owe someone money on a valid judgment, your house is in play.

Here’s the actual process.

Getting the Writ

After a creditor wins a judgment, they can apply for a Writ of Execution. This is filed in the county where your property sits.

The writ is basically permission from the court for the sheriff to seize assets. Could be your car. Your bank account. Your house.

Real property is harder to grab than cash, so creditors usually try everything else first. But when you’re dodging a half-million-dollar debt and you own a $20 million mansion? Yeah, they’re coming for the house.

The Levy Process

Once the writ issues, the levying officer (county sheriff or marshal) records it against your property. This creates a lien.

They serve you with a Notice of Levy. This document tells you they’ve just put a claim on your house.

Then you wait 120 days. That’s mandatory. Gives you time to panic, hire a lawyer, maybe refinance or settle the debt.

In those 120 days, I’ve seen people pull off miracles. Borrowed from family. Sold other assets. Negotiated payment plans. Filed bankruptcy.

Or, like the Pettys, you do nothing and hope it goes away.

Notice of Sale

After 120 days, the sheriff records and publishes a Notice of Sale.

This goes out at least 20 days before the auction. Gets posted on your front door. Gets published in the legal notices section of local newspapers—you know, that part nobody reads until their house is being sold.

Gets mailed to anyone with a junior lien on the property.

This is when it becomes real. Neighbors see the notice on your door. Title companies see it in public records. Investors start calling.

The Auction

Sheriff’s sales happen at the courthouse. Usually 10 a.m. on a weekday.

People show up with cashier’s checks. The auctioneer reads the legal description. Bidding starts, often at the amount owed on the judgment.

Here’s the brutal part: these auctions attract investors looking for deals. Your house doesn’t get marketed. No open houses. No staging. No Zillow listing with professional photos.

Properties at sheriff’s sales go for 20 to 30 percent below market. Sometimes worse.

Imagine losing $4 million on a $20 million property because you didn’t pay a $503,000 debt. That’s the math.

The winning bidder gets a Sheriff’s Deed. You get whatever’s left after the mortgage, the homestead exemption, the judgment, and all the fees.

Usually? Not much.

California Homestead Exemption Laws: The 2026 Numbers

Every time I mention the homestead exemption, clients think they’re bulletproof.

You’re not.

The exemption protects a chunk of your equity. In 2026, that amount varies by county based on median home prices.

2026 California Homestead Exemption by County Type

The exact amount gets calculated using the greater of: (1) the statewide median home price or (2) your county’s median home price, with a floor and ceiling adjusted annually for inflation.

How the Homestead Exemption Actually Works

Say your house is worth $800,000. You owe $400,000 on the mortgage. You’ve got $400,000 in equity.

Someone gets a $100,000 judgment against you and wants to force a sale.

First, the mortgage gets paid from the sale proceeds. That’s $400,000 gone.

Second, you get your homestead exemption. In LA County, that’s $722,151.

But wait—you only have $400,000 in sale proceeds after the mortgage. The entire amount goes to you as the homeowner. The creditor gets nothing because there’s no money left after the exemption.

The sale doesn’t happen. Not worth the creditor’s time.

Now flip it. Same house, but you only owe $100,000 on the mortgage. You’ve got $700,000 in equity.

The $100,000 mortgage gets paid. That leaves $700,000.

Your homestead exemption is $722,151, so you’re protected, right?

Wrong.

You only have $700,000 in proceeds. But the exemption is higher than that, so again, you get the full amount. The creditor still gets nothing.

But what if your house is worth $2 million and you owe $500,000?

Now you’ve got $1.5 million in equity. Mortgage gets paid, leaving $1.5 million.

You take your $722,151 homestead exemption off the top.

That leaves $777,849 on the table.

If someone has a judgment against you for $100,000, they can force the sale. They’ll get their hundred grand plus costs. You’ll get your $722,151. The rest covers fees and whatever’s left over comes back to you.

But here’s the thing nobody tells you: you still lose your house. Even though you walked away with $722,151, you’re now homeless and looking for a new place to live in the second-most expensive real estate market in the country.

The Hidden Hills Property Dispute Numbers

In the Minaj case:

• Property value: $20 million
• Mortgage balance: $13.3 million
• Equity: $6.7 million
• Homestead exemption (LA County): $722,151
• Vulnerable equity: $5,977,849

Weidenmuller was owed $503,318. After costs and fees, call it $600,000.

There was nearly $6 million in equity above the homestead protection. The sale made total sense for the creditor.

That’s why Judge Pánuco was ready to sign off. The numbers worked.

Three Mistakes That Cost People Their Homes

I’ve been doing this long enough to see patterns. Same mistakes, different faces.

Mistake One: Ignoring the Lawsuit

People get served all the time. Slip and fall. Car accident. Breach of contract. Employment dispute.

Half my clients shove the papers in a drawer and pretend it didn’t happen.

“They cannot substantiate it.” “I’ll take care of it later.” “My friend says they’ll simply disappear.”

No. They won’t.

When you ignore a lawsuit, the plaintiff files a Request for Entry of Default. Thirty days later, they get a default judgment for whatever they asked for in the complaint.

Now you’ve got a judgment against you. It’s good for ten years. Renewable for another ten. It accrues interest at 10% per year in California.

That $50,000 debt you ignored? In five years it’s $80,000. In ten years it’s $130,000.

And the creditor can pursue it any way they want. Garnish your wages. Levy your bank account. Force the sale of property in California.

Petty and Minaj ignored the lawsuit for years. Ignored the default judgment. Ignored the collection attempts.

It almost cost them everything.

Mistake Two: Thinking “They Can’t Touch My House”

I hear this weekly.

“My house is protected.” “I’ve got the homestead exemption.” “They can’t make me sell.”

Yes, they can. We just went through the math.

California homestead exemption laws provide protection, not immunity. If you’ve got equity above the exemption, that equity is vulnerable.

And in California’s housing market, a lot of people have substantial equity. You bought in 2012 for $400,000? Your house is worth $1.2 million now? Congratulations, you’re a millionaire on paper and a target for judgment creditors.

Mistake Three: Waiting Until the Last Second

Minaj paid hours before the judge signed the authorization order. That’s not strategy. That’s Russian roulette.

Most people can’t pull that off. They don’t have liquid assets sitting around. They need time to borrow money, sell stocks, tap retirement accounts, whatever.

By the time they realize how serious this is, their options have evaporated.

I had a client last year who waited until the Notice of Sale was published. Tried to refinance. Couldn’t get approved fast enough because the lien screwed up his title. Tried to sell. Couldn’t find a buyer willing to wait for the legal mess to clear.

He lost the house.

Could’ve settled the $80,000 judgment for $60,000 six months earlier. Instead he lost a house with $200,000 in equity.

How to Stop a Forced Home Sale in California

So what do you actually do when you’re facing this nightmare?

Pay the Judgment

Obvious answer, but it’s the cleanest.

If you owe $50,000, scrape together $50,000. Borrow from family. Cash out investments. Take a loan against your 401(k). Sell your car.

Anything’s better than losing your house.

And negotiate. Most creditors will take less if you’re paying now versus dragging this out. Offer 70 cents on the dollar for immediate payment. Some will take it.

File Bankruptcy

The second you file a bankruptcy petition, everything stops.

It’s called the automatic stay. No more collection calls. No wage garnishments. No bank levies. No forced sales.

Chapter 7 bankruptcy can wipe out the judgment completely if you qualify. The homestead exemption applies in bankruptcy too, so if your equity is under the limit, you keep your house and the debt disappears.

Chapter 13 lets you reorganize. You propose a payment plan over three to five years. The court approves it. You make monthly payments. You keep your house.

I’ve saved dozens of homes through bankruptcy. There’s no shame in it. It’s a tool, and sometimes it’s the right move.

Sell It Yourself

If the forced sale is coming and you can’t stop it, at least control it.

List your house with a real estate agent. Get an actual marketing campaign. Find a buyer willing to pay market value.

Whatever you net will beat a sheriff’s sale by a mile.

Sheriff’s sales attract vultures. Investors who want 30% discounts. People who know you’re desperate.

Don’t give them the satisfaction.

Refinance to Pay the Debt

If you’ve got equity and decent credit, pull out enough cash to pay the debt.

Example: You owe $300,000 on a house worth $600,000. You’ve got a $75,000 judgment.

Refinance to $375,000. Pay off the original mortgage and the judgment. Your monthly payment goes up, but you keep your house.

Sometimes that’s the play.

Challenge the Judgment

Not common, but sometimes it works.

If you were never properly served, you can file a motion to set aside the default. If the plaintiff screwed up the lawsuit procedurally, you might have grounds to vacate the judgment.

But you need actual legal defenses, and you need to move fast. Courts don’t like undoing judgments unless there’s a real problem with how they were obtained.

I’ve done it a few times. It’s hard. You need a good lawyer and a legitimate reason.

Kenneth Petty Legal Update: The Broader Picture

Paying off Weidenmuller didn’t make Petty’s life easier.

He’s still dealing with a federal lawsuit in Brooklyn over allegations that he and Minaj tried to intimidate Jennifer Hough, the woman involved in his 1994 attempted rape conviction.

That case is ongoing as of early 2026. More legal fees. More potential exposure.

When you’ve got multiple lawsuits going at once, they compound. One judgment leads to collection action, which distracts from the other case, which leads to another default, which creates more problems.

It’s a spiral.

What the 2026 Numbers Mean for Homeowners

The homestead exemption for 2026 adjusted upward with inflation. Los Angeles County is at $722,151. San Francisco is similar. Orange County too.

Rural counties with lower home prices have lower exemptions. Fresno County is around $371,547. Kern County similar.

The exemption gets recalculated every year based on the California Consumer Price Index. As long as housing costs keep climbing, the exemption should keep climbing.

But it’s never kept pace with actual home appreciation. Exemption goes up 3-4% per year. Home values in LA have gone up 8-10% annually for the last few years.

The gap between what’s protected and what’s vulnerable keeps growing.

Who’s at Risk for Forced Sale of Property California

Anyone with substantial equity.

If you bought your house twenty years ago and it’s appreciated like crazy, you’re sitting on a goldmine. But that goldmine is accessible to creditors if you get hit with a judgment.

Small business owners are especially vulnerable. You get sued by an employee, a vendor, a customer—suddenly you’re defending a six-figure lawsuit. If you lose, your house is on the line.

Professionals with malpractice exposure. Doctors, lawyers, accountants, architects. One bad claim can create a judgment bigger than your insurance covers.

Anyone who drives. Car accidents can generate massive judgments if someone’s seriously injured and you don’t have enough liability coverage.

How to Protect Yourself

First, insurance. Umbrella policies are cheap. For a few hundred bucks a year, you can get $1-2 million in additional coverage.

If Petty had proper insurance for that incident in Germany, this whole situation might never have happened.

Second, respond to lawsuits. Always. Even if you think they’re bogus. Even if you can’t afford a lawyer. File an answer. Show up to court. Make them prove their case.

Third, know your numbers. What’s your house worth? What do you owe? What’s your equity? How much of that is protected by the homestead exemption in your county?

If you’ve got $500,000 in vulnerable equity and you’re in a high-risk profession, maybe you need to think about asset protection strategies before you get sued.

Fourth, don’t let debts become judgments. If you owe someone money, pay them or settle. Once it’s a judgment, your options narrow.

The Reality of Sheriff’s Sales in 2026

I’ve been to dozens of these auctions over the years. They’re depressing.

Someone’s home gets auctioned off in ten minutes. The auctioneer reads the legal description—”Lot 47 of Tract 3829″—like it’s not someone’s life getting sold.

Bidding starts. Usually there are only two or three bidders. Investors who do this professionally. They are fully aware of the amount they are willing to pay.

The judgment creditor can make a credit bid, meaning they can bid the amount they’re owed without putting up cash. If nobody bids higher, they get the property.

If someone else wins, they need a cashier’s check right there. Full amount. No financing contingencies.

The whole thing takes fifteen minutes. Then everyone goes home except the former homeowner, who now has to figure out where they’re going to live.

Most properties sell for 70-80% of market value at sheriff’s sales. Sometimes less.

I watched a house in Pasadena go for 65% of its Zillow estimate last year. The owner could’ve sold it himself for full price. Instead he lost $180,000 by letting it go to auction.

What Happens After the Sale

The winning bidder gets a Sheriff’s Deed. It transfers ownership immediately.

The former owner has to leave. If they don’t, the new owner can file an unlawful detainer action to evict them.

Any junior liens get wiped out. If there was a second mortgage or a home equity line of credit recorded after the judgment lien, those are gone. The holders of those liens get nothing.

The sheriff distributes the sale proceeds in order of priority:

First, senior liens get paid. The first mortgage, property taxes, any liens recorded before the judgment.

Second, the homeowner gets the homestead exemption amount (or the remaining proceeds if it’s less than the exemption).

Third, costs of sale. Sheriff’s fees, publication costs, the whole administrative overhead.

Fourth, the judgment creditor gets paid.

Fifth, if anything’s left—and there usually isn’t—it goes to the former homeowner.

In practice, people rarely walk away with much. By the time all the liens and fees and exemptions are carved out, there’s not a lot left.

The Hidden Hills Settlement: Lessons Learned

According to court records, Minaj’s team paid the judgment right before the January 22 hearing.

Weidenmuller’s attorney confirmed the payment came at “the one-yard line.” Meaning Judge Pánuco was literally ready to sign the order.

Some people think that’s cutting it too close. I think it shows calculation.

Minaj’s team bought almost two years of time. Paid at the absolute last second. Avoided earlier negotiation that might’ve cost more.

From a pure financial standpoint, they optimized their cash flow. They didn’t pay a dollar before they had to.

From a stress standpoint? I can’t imagine living like that.

Most of my clients don’t have the luxury of writing a half-million-dollar check at the buzzer. They need time. They need options. They need to act before everything collapses.

Practical Advice for 2026

If you’re worried about forced sale of property in California, here’s what I tell people:

Get your financial house in order. Know what you own, what you owe, and what you’re exposed to.

Carry adequate insurance. More than you think you need.

Respond to legal documents immediately. Don’t procrastinate. Don’t ignore.

If you get hit with a judgment, deal with it fast. The longer you delay, the worse the situation becomes.

Consider bankruptcy early if that’s the right move. Don’t wait until you’re broke and desperate.

And for God’s sake, don’t assume your house is protected just because you live in it.

California law is clear: forced sale of property is a real thing. Courts authorize it every single day. The homestead exemption helps, but it’s not a magic shield.

Your home is both your castle and a liquidatable asset. The law treats it as both.

You’ll be better prepared the sooner you realise that.

California Homeowner’s Asset Protection Checklist

Immediate Actions (Do This Week)

Insurance Review

• Check your homeowner’s liability coverage limits
• Review auto insurance liability limits (minimum $500k recommended)
• Price umbrella insurance policies ($1-2M coverage, typically $200-400/year)
• Verify business liability insurance if you’re self-employed
• Consider professional liability insurance if applicable (doctors, lawyers, accountants, contractors)

Property Assessment

• Get current market value estimate (Zillow, Redfin, or professional appraisal)
• Calculate total mortgage debt and liens
• Determine your actual equity (market value minus all debts)
• Look up your county’s 2026 homestead exemption amount
• Calculate vulnerable equity (total equity minus homestead exemption)

Legal Status Check

• Search your name in county superior court records for any judgments
• Run a title report on your property to check for unknown liens
• Review any pending lawsuits or legal threats
• Verify how your property title is held (sole, joint tenancy, community property, trust)
• Check for any outstanding collection notices or demand letters

If You’re Served With a Lawsuit

First 72 Hours

• Do NOT ignore it (this is the costliest mistake)
• Read the complaint carefully and note the deadline to respond (usually 30 days)
• Make copies of all documents you received
• Contact a litigation attorney immediately (consultations often free)
• Notify your insurance company if the claim might be covered

Within 30 Days

• File a formal response (answer, demurrer, or motion) with the court
• Serve your response on the plaintiff’s attorney
• File proof of service with the court
• Begin gathering evidence and documents related to the case
• Consider mediation or settlement discussions early

If You Have a Judgment Against You

Immediate Steps

• Get a certified copy of the judgment from the court clerk
• Calculate total amount owed (principal + interest + costs)
• Contact the creditor’s attorney to discuss payment or settlement
• Explore payment plan options (many creditors will negotiate)
• Consider bankruptcy consultation if debt exceeds $50,000

Asset Protection

• Do NOT transfer property to family members (fraudulent conveyance)
• Do NOT hide assets (can result in criminal charges)
• Do consider legitimate asset protection before collection starts
• Review whether bankruptcy makes sense for your situation
• Consult with both bankruptcy and real estate attorneys

If You Receive Notice of Execution or Levy

You Have 120 Days – Use Them

• Hire an attorney immediately (this is beyond DIY territory)
• Contact the levying officer to confirm amounts owed
• Explore refinancing options to pay off judgment
• Consider listing property for sale yourself
• File bankruptcy if appropriate (triggers automatic stay)
• Negotiate settlement with creditor (often willing to discount)

Financial Options

• Get mortgage pre-approval for refinance
• Contact family for potential loans
• Evaluate liquidating other assets (cars, investments, retirement accounts)
• Consider home equity line of credit (if available)
• Research hard money lenders if traditional financing unavailable

Preventive Measures for High-Risk Individuals

Business Owners

• Maintain clear separation between business and personal assets
• Use LLCs or corporations appropriately
• Keep business liability insurance current
• Never personally guarantee business debts unless absolutely necessary
• Consider holding property in spouse’s name (if single income household)

High-Net-Worth Individuals

• Establish asset protection trusts (before any legal threats)
• Review estate planning with asset protection attorney
• Consider offshore asset protection if appropriate
• Maintain maximum umbrella insurance coverage
• Document all property transfers with legal counsel

High-Risk Professionals

• Carry malpractice insurance with appropriate limits
• Consider excess malpractice coverage
• Review policy exclusions and gaps
• Keep detailed records of all client interactions
• Maintain separate business entity for professional practice

Documentation to Maintain

Keep These Safe and Accessible

• Original property deed and title insurance
• All mortgage documents and payment records
• Homestead declaration (if you filed one)
• Property tax records
• Homeowner’s insurance policies and declarations
• Any legal documents related to the property
• Evidence of continuous residence (utility bills, voter registration)

Financial Records

• Last 3 years of mortgage statements
• Current property appraisal or assessment
• Records of all improvements and expenses
• Insurance claim history
• HOA documents and payment records

Warning Signs You’re at Risk

Red Flags

• You’ve been served with a lawsuit and haven’t responded
• You have a default judgment against you
• You’re being contacted by collection agencies
• You’ve received certified mail from courts or attorneys
• You have equity above your county’s homestead exemption
• You’re in a high-liability profession without adequate insurance
• You’ve ignored debt collection for over 6 months

Get Legal Help Immediately If:

• A Notice of Levy has been recorded on your property
• The sheriff’s office has contacted you
• A Notice of Sale has been published
• You’ve received a Writ of Execution
• Your wages are being garnished
• Your bank accounts have been levied

County-Specific Resources

Los Angeles County

• Homestead exemption: $722,151 (2026)
• Superior Court: lacourt.org
• Sheriff’s Department Civil Division: lasd.org
• Legal Aid: lassd.org, Public Counsel

San Francisco County

• Homestead exemption: $722,151 (2026)
• Superior Court: sfsuperiorcourt.org
• Sheriff’s Department: sfsheriff.com
• Legal Aid: sfbar.org/larc

Fresno County

• Homestead exemption: $371,547 (2026)
• Superior Court: fresno.courts.ca.gov
• Sheriff’s Office: fresnosheriff.org
• Legal Aid: centralcallegalservices.org

Professional Contacts to Have Ready

Essential Professionals

• Real estate attorney specializing in creditor defense
• Bankruptcy attorney (for consultation)
• Real estate agent familiar with distressed properties
• Mortgage broker who handles difficult situations
• CPA or tax advisor
• Financial planner with asset protection experience

Monthly Monitoring

Set Up Alerts

• Monitor your credit report monthly (annualcreditreport.com)
• Set Google Alerts for your name + “judgment”
• Check county recorder’s office quarterly for liens
• Review property tax bills for accuracy
• Monitor your property’s estimated value

Annual Review

Once a Year

Assess whether property titling still makes sense

Recalculate your vulnerable equity

Review insurance coverage limits

Update asset protection strategies

Verify current homestead exemption amount for your county

Meet with attorney if circumstances have changed

Review title insurance and property records

Critical Reminders:

The best time to protect your assets is BEFORE you have legal problems. Once a lawsuit is filed, your options narrow dramatically. Once a judgment exists, many asset protection strategies become fraudulent conveyances.

California homestead exemption laws provide real protection, but they’re not absolute shields. If you have substantial equity above the exemption, you’re vulnerable to forced sale of property California.

The Minaj case proves that wealth doesn’t protect you from poor legal strategy. Ignoring problems makes them exponentially worse.

Take this checklist seriously. Print it. Work through it. Update it annually.

Your home is likely your biggest asset. Protect it accordingly.

FAQs About Forced sale of property California 2026

Can a creditor really force the sale of my house in California?

Yes. I’ve seen it happen over a hundred times. If you have a judgment against you and enough equity in your home above the California homestead exemption, creditors can get a court order forcing the sheriff to auction your property. The homestead exemption protects between $371,547 and $722,151 depending on your county (higher in expensive counties like LA and SF, lower in rural counties like Fresno and Kern), but any equity above that is fair game. I had a client lose a house over a $90,000 judgment last year because he had $400,000 in vulnerable equity and waited too long to act.

What is California’s homestead exemption in 2026?

For 2026, it ranges from $371,547 to $722,151 based on median home prices in your county. High-cost counties like Los Angeles, San Francisco, Orange, San Mateo, and Santa Clara are at the top end around $722,151. Medium-cost metros like San Diego and Sacramento fall in the $543,000-$650,000 range. Lower-cost counties like Fresno, Kern, and San Joaquin are closer to the $371,547 floor. The amount adjusts every year for inflation. This exemption means you get to keep that much from a forced sale before creditors get paid, but it doesn’t stop the sale from happening if you have more equity than the exemption amount.

What should I do if I get served with a lawsuit?

Respond within 30 days. File an answer even if you think the lawsuit is garbage. If you ignore it, you get a default judgment, and then you’re fighting uphill. I charge $2,500 to respond to a lawsuit. I charge $15,000 to try to set aside a default judgment, and it usually doesn’t work. Pay the small money upfront. Never, ever ignore legal documents. The Minaj case proves that even people worth hundreds of millions can get burned by ignoring lawsuits. That $503,000 judgment against Petty almost cost them a $20 million house because they didn’t respond to the original lawsuit.

How long does the forced sale process take?

From the time a creditor gets a Writ of Execution to the actual auction usually takes six to nine months. There’s a mandatory 120-day waiting period after the Notice of Levy, plus time for recording documents, publishing notices, and scheduling the auction. But you can stop the process at any point by paying the judgment, filing bankruptcy, or reaching a settlement. I’ve had clients pay off debts the day before the scheduled auction. It’s not smart to wait that long, but it’s possible. Minaj literally paid hours before the judge was going to sign the final authorization.

What happens at a sheriff’s auction?

It’s brutal. The auction happens at the courthouse, usually midmorning on a weekday. The auctioneer reads a legal description of your property. Bidding starts, often at the amount of the judgment. Investors show up with cashier’s checks looking for deals. Properties typically sell for 20-30% below market value because there’s no marketing, no inspections, and buyers are taking risks. It takes ten or fifteen minutes to complete.

The winning bidder gets a Sheriff’s Deed and you get whatever’s left after the mortgage, your homestead exemption, and all the fees get paid. Usually not much. Then you have to move out. I watched a client lose $180,000 at auction last year in Pasadena because he waited instead of selling the property himself.

This article is not legal advice; it is merely general information. If you’re facing a judgment or forced sale, talk to a California attorney who can look at your specific situation. Laws change, exemption amounts adjust annually, and every case is different.