Question

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 12-2. Mary will receive

A) $20,000
B) $50,000
C) $80,000
D) $30,000

Answer 1

Mary will receive $30,000.

Step-by-step explanation:

Mary will receive $30,000.

In this case, Mary's home is sold at auction for $80,000. However, her state has a homestead exemption of $30,000. This means that Mary is entitled to keep $30,000 of the sale proceeds.

Therefore, Mary will receive $30,000.