Linda purchased her home in Framingham, Massachusetts in 2010 and recorded a Declaration of Homestead at that time. In 2018, she refinanced her mortgage. Her lender required her to sign a waiver of homestead rights as part of the refinance closing documents. In 2024, a credit card company obtains a $200,000 unsecured judgment against Linda. Which statement best describes Linda's homestead protection against the credit card judgment?
Correct Answer
B) Linda retains full $500,000 declared homestead protection because a waiver to a lender does not eliminate protection against unsecured creditors
Under MGL Chapter 188, a homestead waiver signed in favor of a mortgage lender during a refinance applies only to that specific lender's mortgage interest. It does not eliminate the homestead protection against other unsecured creditors. Linda's declared homestead remains fully effective against the credit card company's unsecured judgment. The waiver only allows the lender to foreclose on the property without the homestead being asserted as a defense.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Florida real estate licenses must be renewed biennially, and sales associates have specific post-license education requirements for their first renewal.
License requirements are the mandatory qualifications—including pre-licensing education, examination, and background checks—that a person must satisfy before legally practicing real estate. These requirements are established and enforced by each state's real estate commission.
Market allocation is an illegal antitrust practice in which competing real estate brokerages agree to divide markets among themselves by geographic area, property type, or price range, thereby eliminating competition.
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