Fact Pattern 21-1
Mary'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 21-1. Mary will receive

Question

Fact Pattern 21-1 
Mary'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 21-1. Mary will receive

Quizplus · Accepted Answer

Mary is entitled to the $30,000 homestead exemption, which means that the first $30,000 of the sale proceeds must go to her before any remaining funds go towards paying off her debt to Nina. Thus, Mary will receive the $30,000 exemption amount, and the remaining $50,000 will go towards satisfying her debt to Nina. Mary will not receive any additional funds beyond the $30,000 exemption.