Tom Horton Is Building a Cabin on Land That He

Tom Horton is building a cabin on land that he already owns. He hired Landmark Builders as his contractors. The cabin was completed except for internal finishing work when Landmark declared bankruptcy. Horton had agreed to pay Landmark $475,000 for construction of the cabin and had paid out $400,000 to Landmark by the time Landmark declared bankruptcy. Subcontractors for the framing, roofing, staining, and grading are owed $125,000. The subcontractors have all filed (properly) liens on the property. Which of the following statements is not true?

A) Some states provide protections against requiring residential property owners to pay subcontractors left unpaid by an insolvent contractor.
B) In some states, Horton could be required to pay the subcontractors.
C) The subcontractors can pursue their claims in bankruptcy.
D) The homestead exemption would not apply to a cabin type of home.