Homestead protection is provided to West Newbury MA property owners and protects their equity from unsecured creditors. This is a vital consideration for any homeowner. The West Newbury MA homestead protection information below covers the most important aspects of this law.
What Is Protected
Property owners gain equity in a piece of real estate over the years. The amount may not be much initially, but will grow to a larger value over time. There may be cases where creditors or other parties will go after that equity to fulfill a financial obligation of a homeowner. Protecting it can be critical.
Imagine you are in a car accident and the other party sues you and wins, and the damages are beyond the amount covered by insurance. Your assets, such as real estate, may be levied to fulfill your financial responsibility. This is just one of many different scenarios where homestead protection could prevent you from losing your home.
West Newbury MA Homestead Protection Information
Massachusetts property owners receive an automatic protection of one-hundred and twenty-five thousand dollars (125,000) without filing any forms. A Declaration of Homestead can be filed at the registry of deeds in the county where your primary residence is located to increase the dollar value up to five hundred thousand dollars (500,000). The filing involves a specific form and a fee, which varies for each county but is usually less than one-hundred (100) dollars. If you are buying a new home, details will be given to you by the closing attorney.
Homestead protection only applies to a primary residence. There are specific provisions for individuals over the age of sixty-two (62) and disabled individuals. The Homestead Law will not protect against all creditors or lawsuits. Certain exceptions apply, such as municipal tax levies, mortgages on the property, and probate court judgements, just to mention a few. For complete information on this law, visit the website for the Secretary of State. The information in this blog is offered as an overview using facts available at the given time. It may change without notice (as alterations may take place to the Homestead law over time). Please always check with the website link above for current facts.