Homestead Declaration - Enhanced Protection for Homeowners
April 7, 2011
Michael J. Grilli, Esq.
For years, homeowners in Massachusetts have relied on the Declaration of Homestead to protect them from creditors. Up until recently, those who elected a Homestead Declaration on their primary residence were afforded protection for up to $500,000.00 in equity in their homes. However, there was always the chance that a homeowner would discover too late that they had never filed a Declaration of Homestead. The result being that a creditor would have the ability to attach their property and force a sale of the residence in order to satisfy the creditor’s claim, and the homeowner would be powerless to stop them.
This dire circumstance will be prevented in most cases in Massachusetts due to the recent passing of a revision to the Massachusetts Homestead Act. Under it, homeowners in the Commonwealth of Massachusetts will automatically have a homestead exemption of $125,000.00 in equity, regardless of whether or not they ever actually file the homestead exemption in the Registry of Deeds. For those who still choose to file a Homestead Declaration, the protection increases $500,000.00.
This new legislation is being applauded by consumer rights advocates in Massachusetts as closing up a loop-hole that has existed since the Homestead Act first came into being, ...
YOu may read more at the link below.
Westfield Evening News
April 7, 2011
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