Governor Deval Patrick Passes Law Protecting Homeowners

Posted by Kim on December 27, 2010 in RE Laws

On December 18th, Governor Deval Patrick signed into law a bill that automatically provides
Massachusetts homeowners with a $125,000 cushion against debt collectors, if they hold that
much equity in their properties.

According to the Boston Globe, “The legislation clarifies ambiguities in a law first enacted
in 1851. The statute, amended a number of times in ensuing years, provided $500,000
in protection from creditors — but only for homeowners who file a so-called homestead
declaration with a county registry of deeds, a process that can cost between $35 and $100.
Under the new law, homeowners do not have to make such a filing unless they hold more
than $125,000 in equity in their homes. They can still get $500,000 in protection if they file a
homestead declaration.”

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