Legal Question in Real Estate Law in Massachusetts

Re: Homestead

Yes. Homesteads still exist, and a homestead will protect you against creditors for up to $350K or so in Massachusetts, 500K if you are married and your Wife or Husband, as the case may be) is on the deed (it keeps changing.)

This is a simple form and must be recorded in the registry before any other liability attaches, i.e., before you are sued, or before you take a loan. If the bank wants you to put up collateral, namely your home, they will ask you to get rid of the homestead. If they are just looking for a personal guarantee, then maybe not. Banks are very aware of homesteads.

Re: Homestead

Yes, homestead still exists in Massachusetts. It might make sense, if you are married, to have your spouse execute the Declaration of Homestead. How you hold title to your home also affects how much it will be at risk.

See comments of the other attorney concerning timing, and considerations of the bank.

You should also make sure that any representations made by the bank are in writing, and that the loan closing documents don't supercede what you were told prior to the closing.

Beyond that, you really should consider engaging competent legal counsel to advise you about such questions, particularly since it sounds like you may be exposed to liability from actions of your co-owners.

Re: Homestead

The Homestead still exists, you have to file it with the registry and will exempt up to $500,000 in equity assuming you are married. It is not a protection against Mortgages that you grant to institutions or otherwise consent to the recording of liens for lien holders.

The protection is not absolute, but is largely a good protection.

If the bridge loan you obtain requires a mortgage on your home the homestead will not protect you if you grant them such a lien.

Your 401K should be immune from attachment until such time as you start to make withdrawals. Once deposited in your bank account they would be subject to attachment.