Homestead Limits: Foreclosure

by Nicholas Ortiz, Boston Bankruptcy Attorney

October 20, 2007

Occasionally I hear from someone who believes that a homestead affords some protection from mortgage foreclosure. This is not the case. Homesteads are subordinated to mortgages upon grant of the mortgage.

In Massachusetts and elsewhere, a homestead protects a home from forced sale for non-payment of most unsecured debts. So a homestead is a very good idea: if you are having problems paying credit card debts, for example, but can still pay your mortgage, your homestead can not be sold by a unsecured judgment holder to satisfy a debt that post-dates the mortgage.

Homesteads also protect home equity in bankruptcy. Note that the specifics of homestead law varies by state.

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Nicholas Ortiz, Boston Bankruptcy Attorney

From Attorney Ortiz: We have been helping consumers and small businesses in Massachusetts successfully navigate through the bankruptcy process since 2002. We offer free initial consultations and payment plans. Call us at 617-716-0282 to discuss your debt relief options. Mention the Bankruptcy Law Network when you call!

Last modified: October 20, 2007