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. Nina may recover

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. Nina may recover

Quizplus · Accepted Answer

The homestead exemption protects Mary's home equity up to $30,000 from being used to satisfy creditor claims. In this case, Mary's equity in her home is $50,000 ($80,000 sale price - $30,000 exemption), and Nina's claim is for $60,000. Therefore, Nina may recover up to the amount of Mary's equity, which is $50,000.