Legal Question in Real Estate Law in Massachusetts

My husband and I own a house in MA. The house is currently in my name only. The mtge is currently in my husbands name only. It is a long story of how it came to be. There is quite a bit of equity in the house. My husband owns his own business and has personally guaranteed some things. His business is not doing well. Is it possible for debtors to take the house if he should default on these personally guaranteed loans car payments credit cards etc? Other than a trust, which we cannot afford right now, is there a way to protect the house from any liens etc? What does the homestead act do? Does having the house in my name make a difference?

Asked on 2/25/10, 10:21 am

2 Answers from Attorneys

Christopher Vaughn-Martel Charles River Law Partners, LLC

0 users found helpful

0 attorneys agreed

I would encourage you and your husband to sit down with an attorney and review your current situation in its entirety. Don't hesitate to contact my office if you would like to schedule a telephone or office consultation.

But to answer/address your general questions/concerns:

1. I am very concerned that the house is in your name only, and the mortgage is in your husband's name only. This is something you want to address soon before the lender considers this a breach and calls your loan due.

2. Assuming that your husband has personally guaranteed loans, then it is possible for creditors to attach/garnish/levy your husbands property and accounts. However, if the house is truly in your name only, and you did not sign a guarantee of any kind, the home is generally safe from his creditors.

3. A homestead declaration prevents creditors from being able to force the sale of your home in order to satisfy a lien. It will not prevent a lien from being placed on the home.

This is really general advice, and may not address all of the facts and considerations of your situation. Talk to you an attorney.

Answered on 3/02/10, 10:31 am

Mark as helpful