Fact Pattern 19-2
Robin's home is in a state that has a $30,000 homestead exemption. Robin de-faults 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 19-2.Suburban Mortgage may recover
A) $0.
B) $30,000.
C) $50,000.
D) $60,000.

Question

Fact Pattern 19-2
Robin's home is in a state that has a $30,000 homestead exemption. Robin de-faults 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 19-2.Suburban Mortgage may recover​
A) $0.
B) ​$30,000.
C) ​$50,000.
D) ​$60,000.

Quizplus · Accepted Answer

Suburban Mortgage may recover the full amount of the debt, which is $60,000. However, Robin is entitled to the $30,000 homestead exemption. Therefore, the amount that Suburban Mortgage can recover from the sale of the home is $80,000 - $30,000 = $50,000.

Fact Pattern 19-2 Robin's Home Is in a State That Has a $30,000