Fact Pattern 22-1
Robin's home is in a state that has a $60,000 homestead exemption. Robin defaults on a $120,000 debt that she owes to Suburban Mortgage Company. Robin's home is sold at auction for $160,000.
-Refer to Fact Pattern 22-1. If Suburban Mortgage recovers less than it is owed, it can realize the difference from

Question

Fact Pattern 22-1
Robin's home is in a state that has a $60,000 homestead exemption. Robin defaults on a $120,000 debt that she owes to Suburban Mortgage Company. Robin's home is sold at auction for $160,000.
-Refer to Fact Pattern 22-1. If Suburban Mortgage recovers less than it is owed, it can realize the difference from​

Quizplus · Accepted Answer

If Robin's home is the only collateral for the debt, then Suburban Mortgage Company may seek to collect the difference between the amount owed and the sale price from Robin's non-exempt property, but not from her exempt property such as the homestead. The homestead exemption protects the value of the home up to the amount of the exemption from being seized to satisfy creditors. Robin's exempt property is protected from creditors, so Suburban Mortgage Company cannot collect the difference from that property. The debt does not extend to property owned by other members of Robin's family.

Fact Pattern 22-1 Robin's Home Is in a State That Has a $60,000