Massachusetts Homesteads
What is a Homestead?
A Homestead is a type of
protection for a person’s residence. There is an
automatic homestead protection of $125,000. A filed
legal document called a “Declaration of Estate of
Homestead” allows homeowners in Massachusetts to
protect their property up to $500,000 of the value of
their primary residence, per family. The document must
be filed at the Registry of Deeds in the county where
the property is located.
Who can file a Homestead?
The owner or owners of a home
who occupy the home as a principal residence, may file
for the Homestead protection. A sole owner, joint
tenant, tenant by the entirety, tenant in common, life
estate holder, or holder of a beneficial interest in a
trust may all be regarded as owners.
How am I protected?
The home shall be protected
against subsequent attachment, levy on execution or sale
to satisfy debts to the extent of $500,000 per
residence, per family.
Is there anything I will not
be protected from?
The following are examples of
some debts that are exempt from the Homestead Law:
Federal, state and local taxes, assessments, claims,
and liens; Mortgages used to purchase the residence and
additional mortgages held by financial institutions or
others; An execution issued from the Probate Court to
enforce its judgment that a spouse pay for the support
of a spouse or minor children; A lien on a home recorded
prior to the creation of the Homestead (except in some
instances when a homestead is followed with a bankruptcy
filing).
What happens to my Homestead
if I should re-mortgage or take out a second mortgage or
home equity loan?
Existing law on the effect of
what happens to a homestead if you refinance your
property is unclear. If you are in this situation, our
firm can advise you whether you should file a new
homestead after refinancing.
A homestead is a
valuable right for homeowners in Massachusetts.
Our firm offers a
free consultation at which we will explain how
homesteads work in Massachusetts, and how they may help
you. We will also prepare a Declaration of Homestead on
your behalf, free of charge.
|
