Robin's home is in a state that has a $60,000 homestead exemption. Robin de-faults 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 26-1. If Suburban Mortgage recovers less than it is owed,it can realize the difference from

Question

Quizplus · Accepted Answer

The homestead exemption allows Robin to exempt up to $60,000 of the value of her primary residence from creditors. Therefore, $60,000 of the proceeds from the sale of her home is protected and cannot be used to satisfy the debt to Suburban Mortgage. The remaining $100,000 is available to Suburban Mortgage to satisfy the debt. If Suburban Mortgage recovers less than it is owed from the sale of Robin's home, it can only realize the difference from Robin's nonexempt property, which is any property other than her primary residence that is not protected by an exemption. Therefore, Option C is the best choice.

Robin's Home Is in a State That Has a $60,000