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Natalija [7]
3 years ago
7

Mr. and Mrs. Lang own a house together. Mrs. Lang records a Declaration of Homestead on the house, without obtaining Mr. Lang's

signature. The house is worth $300,000, and $215,000 remains to be paid on a first deed of trust. If a creditor obtains a judgment against the Langs, the creditor:A.may foreclose because both signatures must be on the Declaration of HomesteadB.may not foreclose because a judgment lien is always inferior to a homestead exemptionC.may foreclose because the net value of the homesteaded property is less than the exemptionD.may not foreclose because the net value of the homesteaded property is less than the exemption
Social Studies
1 answer:
deff fn [24]3 years ago
5 0

Answer:

D. may not foreclose because the net value of the homesteaded property is less than the exemption

Explanation:

People use a declaration of homestead to protect their homes from unsecured creditors. It protects the cash value of your home. In a case where a creditor wants to take the cash value of your house to repay debts that you owe them, a Declaration of Homestead does not allow this.

In the case in question, the creditor may not foreclose, this is because the net value of the house is less than the exemption.

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