Fact Pattern 28-3B
Mary's home is in a state that has a $30,000 homestead exemption. Mary de?faults on a $60,000 debt that she owes to Nina. Mary's home is sold at auc?tion for $80,000.
-Refer to Fact Pattern 28-3B. Mary will receive
A) $0.
B) $30,000.
C) $50,000.
D) $60,000.

Question

Fact Pattern 28-3B 
Mary's home is in a state that has a $30,000 homestead exemption. Mary de?faults on a $60,000 debt that she owes to Nina. Mary's home is sold at auc?tion for $80,000.
-Refer to Fact Pattern 28-3B. Mary will receive
A) $0.
B) $30,000.
C) $50,000.
D) $60,000.

Quizplus · Accepted Answer

Mary will receive the $30,000 homestead exemption that is allowed by her state. The remaining $50,000 will be used to pay off as much of her debt as possible, with any remaining balance still owed to Nina. Mary does not receive any proceeds beyond the homestead exemption.