Things happen. Businesses go bust, sickness, divorce, whatever the issue, things happen that may result in large debt and an eventual  attack on your home equity, its part of a business owners life, taking risk, winning and losing sometimes.

When unexpected events occur, it is important to have prepared for these events in advance of such occurrences. While there is much advice and many strategies offered on how to deal with these issues both in this blog and elsewhere, the point I am making here is there is a very simple way to protect a huge amount of your equity in your home, with very little effort and the cost is well under a hundred dollars.

So many have not yet taken this step, thus I inform you about it and urge you all to act rapidly, as rapidly as you can and do it.

Its called a Homestead, and its a statutory provision that all states have enacted to provide protection of ones equity in their principle place of residence from creditors attempting to reach and liquide to pay a debt.

HERE IS HOW IT WORKS.

Its simple, file a Homestead.

This is a very simple document that requires you knowing your address and the book and page the deed is located in the local registry of deeds. Your lawyer can find this out quickly and easily, or you can go to the local Registry of Deeds were your deed is filed and a clerk will assist you in finding out the information you need. It costs approximately $10.00 to file.

Here is the good news it protects $500,000 of equity in Massachusetts,, varying amounts elsewhere in the country.

No one can penetrate this barrier, no one. Now please keep in mind it works only against after acquired  debt, not debt acquired before you filed the homestead form.

In fact if you are re-financing your home or acquiring a new home with a new mortgage, the mortgage company will require you to either wait to file your homestead  or remove your homestead until after they file and then re-file your homestead so they can come before it and thus have full access to your equity in case of foreclosure.

However all after acquired debt will be barred from penetrating the Homestead protecting up to $500,000 of equity in Massachusetts.

That’s it, that’s all you have to do, and you will sleep better and be very happy should the day ever come that you need such protection.

You do not need a lawyer to accomplish this although most lawyers will gladly handle this for you at a very low cost.

Do it, today. Its almost free and protects a huge amount of your equity, and sleep better. Call for help 413-549-2966.