Waiver of Exemption

Let's assume 65-year-old John Doe borrows $250,000 to buy a house. In his closing documents is a waiver of exemption, which he signs.

Five years go by, and John loses his job. He defaults on the mortgage and goes into foreclosure. Even though John lives in a state that prohibits the seizure of houses from senior citizens, his signature on the waiver of exemption allows the lender to go around the state law and seize the house anyway.