Filing under the act limits how much of your home can be attached, seized, or sold to pay your debts (with some exceptions).
It’s not too often that someone offers such substantial protection at a low cost, so homeowners in this housing market should take advantage of it, experts say.
In August, the Massachusetts Legislature signed the Affordable Homes Act, making a number of updates to the state’s housing laws to accommodate rising home costs, including changes to the Homestead Act.
The Homestead Act is a hidden gem in housing legislation, a low-cost, high-reward initiative. Any Massachusetts homeowner can file for a homestead, which will exempt a portion of their property from creditors. All Massachusetts homeowners are automatically granted up to $125,000 in protection without filing for a homestead, but doing so multiplies that protection eightfold.
With the new changes in the Affordable Homes Act, obtaining a homestead now offers protection for up to $1,000,000 in equity/cash value of your home, double the previous limit.