Fact Pattern 28-4B
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 28-4B.Nina may recover
A)0.
B)$30,000.
C)$50,000.
D)$60,000.

Question

Fact Pattern 28-4B 
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 28-4B.Nina may recover
A)0.
B)$30,000.
C)$50,000.
D)$60,000.

Quizplus · Accepted Answer

Mary's home sells for $80,000, but $30,000 of that is protected by the homestead exemption. This leaves $50,000 in proceeds from the sale. Since Mary owed Nina $60,000, Nina could recover up to the amount of the sale proceeds, which is $50,000 in this case.