Proposed Homestead Amendment

I traveled to Beacon Hill today to join Lowell State Representative Kevin Murphy in testifying in favor of a bill he filed that would clarify two glaring ambiguities that exist in the current homestead statue. The first is whether a mortgage automatically terminates an existing homestead. We've been through this before, but for our new readers, here's the issue: an existing homestead is automatically terminated by a deed. In Massachusetts, a mortgage is technically a deed. Therefore, the mortgage might-does-will terminate the homestead. For every lawyer I find who agrees with the foregoing, I find another who reaches the opposite conclusion. Hence the need for legislative clarification. The second ambiguity involves homesteads filed by spouses. Under current law, if the spouses are 62 or older, they both (each?) can file a homestead, but if they are not yet 62, only one spouse may file it. And if they do both file, can they "stack" the coverage provided by the homestead thereby achieving a total equity exemption of $1 million. Although a recent bankruptcy court ruling said you can't stack homesteads, this area is very ambiguous, as well. Rep Murphy's bill would allow all spouses to declare a homestead and would also allow reciprocal spousal homesteads to provide double the exemption amount. Although the Judiciary Committee certainly had much on its plate at today's hearing, they did seem to give this bill their full attention. We will follow it as it moves through the legislative process. On another note, tomorrow I travel to Greenfield to attend a Registered Land seminar sponsored by the Franklin County Registry of Deeds. I'll post a full report on the seminar in this Thursday's post.