What can creditors do when suing a homeowner with homestead exemption under state law?

Creditors can indeed request a court order for the sale of a homeowner's property, but only for the proceeds that exceed the homestead exemption applied to debts. The homestead exemption protects a portion of a homeowner's equity in their primary residence from creditors, allowing them to retain that amount even in the event of financial distress or legal actions.

When a court order is in place, creditors can enforce their claims against the value of the property that surpasses the exemption threshold. This means that while they cannot force the sale of the entire property or claim its full value, they can access the excess value that remains after accounting for the exemption. This mechanism helps balance the creditor's need to recover debts while still protecting a homeowner's fundamental rights to their residence.

In contrast, the other options mischaracterize the rights of creditors. They either incorrectly state that creditors have no rights to the property or imply that a creditor can fully seize the property or compel its sale entirely, which is not permissible under the protections granted by the homestead exemption.