Legal Question in Real Estate Law in Massachusetts

Re: any liabilities for paying off mortgage

There is no difference in terms of your liability to the injured person. There is a difference in your equity in the home if it is your primary residence. If it is your primary residence a homestead exemption will protect you for $300,000 (elderly $600,000).

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Re: any liabilities for paying off mortgage

The only difference is that you now have more equity in the property (full market value). In order to protect your equity, you should file a Declaration of Homestead. This will protect $300,000 in equity ($600,000 if elderly/handicapped). The Declaration is filed at the Registry of Deeds in the county where the property is located. You should also review your insurance coverage and consider increasing the limits to cover your increased equity.