Fact Pattern 33-2Mary's home is in a state that has a $30,000 homestead exemption. Mary defaults on a $60,000 debt that she owes to Nina. Mary's home is sold at auction for $80,000.
-Refer to Fact Pattern 33-2.Mary will receive

Question

Quizplus · Accepted Answer

Mary is entitled to the $30,000 homestead exemption, so the first $30,000 of the sale proceeds must be applied to that. The remaining $50,000 will go toward satisfying Mary's debt to Nina, but since the debt was only $60,000 and the sale price of the home exceeded that amount, Mary will receive the remaining $30,000.

Fact Pattern 33-2Mary's Home Is in a State That Has