The homestead exemption in a town is $15,000. Four years ago, a man purchased a home for $58,000 and then experienced hard times. At a court-ordered sale, the man's property is purchased for $60,000. If the man has an outstanding mortgage balance of $35,000 and credit card debts amounting to $24,360, how much is protected by the homestead exemption?

Question

Business

Kamila Russell

2 January, 03:04

The homestead exemption in a town is $15,000. Four years ago, a man purchased a home for $58,000 and then experienced hard times. At a court-ordered sale, the man's property is purchased for $60,000. If the man has an outstanding mortgage balance of $35,000 and credit card debts amounting to $24,360, how much is protected by the homestead exemption?

+5

Answers (1)

Know the Answer?

Jenny Robles · Answer 1

protected by 15,000

Explanation:

the owner equity in the property is for:

60,000 - 35,000 = 25,000

the exemtion is up to 15,000

When the exemption is greater than his equity in the house the creditors can force the sale like in this case. However the man will receive proceeds from the sale.

After the mortage is paid, the proceeds form the sale will split 15,000 to the man and the rest from the credit card debts.