Legal Question in Real Estate Law in Massachusetts

What is a ''Declaration of Homestead''?

I'm applying for a mortgage. The closing attorney asked whether I'd like purchase a ''Declaration of Homestead''. What is that and what does it do?

Thanks.


Asked on 8/19/02, 10:22 pm

1 Answer from Attorneys
Robert Trant Law Office of Robert R. Trant

Re: What is a ''Declaration of Homestead''?

A properly filed homestead protects up to $300,000 of your equity in the house. It does not apply to the mortgage or to any other lien recorded prior to the homestead. If you fail to pay the mortgage, the bank can and will foreclose. For example, if the house is worth 400,000 and you have 200,000 first mortgage and 100,000 second mortgage then you have 100,000 equity in the home. The homestead would protect this equity from being attached by a judgment creditor. For more info http://www.salemdeeds.com/html/homestead.html.

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Answered on 8/20/02, 10:33 am


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