Fact Pattern 29-2
Robin's home is in a state that has a $30,000 homestead exemption. Robin defaults on a $60,000 debt that she owes to Suburban Mortgage Company. Robin's home is sold at auction for $80,000.
-Refer to Fact Pattern 29-2. If Suburban Mortgage recovers less than it is owed, it can realize the difference from
A) any property that Robin owns.
B) only exempt property that Robin owns.
C) only nonexempt property that Robin owns.
D) property that any other member of Robin's family owns.

Question

Fact Pattern 29-2
Robin's home is in a state that has a $30,000 homestead exemption. Robin defaults on a $60,000 debt that she owes to Suburban Mortgage Company. Robin's home is sold at auction for $80,000.
-Refer to Fact Pattern 29-2. If Suburban Mortgage recovers less than it is owed, it can realize the difference from​
A) ​any property that Robin owns.
B) ​only exempt property that Robin owns.
C) ​only nonexempt property that Robin owns.
D) ​property that any other member of Robin's family owns.

Quizplus · Accepted Answer

In this scenario, Robin's home is exempt up to $30,000 under the homestead exemption. Therefore, Suburban Mortgage can only recover the difference between the amount owed and the sale price of the home from Robin's nonexempt property. They cannot recover from any property that Robin owns that is exempt under state law, nor can they recover from property owned by other members of Robin's family.

Fact Pattern 29-2 Robin's Home Is in a State That Has a $30,000