Date: 03/16/2011 Author: NCLC and MLRI
On March 16, 2011, a new Massachusetts Homestead Law went into effect, which updated and revised Massachusetts General Laws c. 188, sect. 1-10. Here are some of the important highlights:
- The Homestead Act allows homeowners in Massachusetts to protect their principal residence from unsecured creditors, up to a certain amount
- Existing homesteads recorded prior to March 16, 2011 remain valid
- There is an automatic $125,000 homestead; no recordation of a homestead declaration is needed for this protection
- Homeowners receive a $500,000 homestead protection by recording a homestead declaration; all owners must sign to gain the protection
- All owners must occupy or intend to occupy the home as principal residence
- Owners who are elderly or disabled should each file a homestead under section 2 of the new law to gain maximum protection (beyond $500,000)
- Under new law, both spouses can record a homestead
- Property held in trust can be homesteaded
- Every homeowner who has refinanced his/her mortgage in the last several years should record a new homestead declaration since many refinancing mortgages contained a waiver of homestead rights
- If a married couple has divorced or separated, each should re-examine whether a new homestead declaration is needed
- As under prior law, homestead declarations are subject to mortgages executed by all owners.
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