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I will be a personal Guarantor on a business loan and I am concerned about my declaration of homestead rights.

West Springfield, MA |

My wife is on homestead and not on business loan. I have homestead declaration in Mass.

I am curious if a creditor is allowed to ask for a waiver of homestead on a loan other than a mortgage for said property.

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Attorney answers 2


What are you worried about (i.e. what is your question)? You have personal liability for the business loan if you gaurantee it, just like any loan, and you are correct that there are exemptions if they try and collect a judgment or you file bankruptcy.

Disclaimer: This answer does not constitute legal advice. I am admitted in the States of New York, New Jersey and Massachusetts only and make no attempt to opine on matters of law that are not relevant to those three States. This advice is based on general principles of law that may or may not relate to your specific situation. Facts and laws change and these possible changes will affect the advice provided here. Consult an attorney in your locale before you act on any of this advice. You should not rely on this advice alone and nothing in these communications creates an attorney client relationship.


The steps you have taken are likely to keep your house but it may not and if you are the one in ten who is not protected, it will be no comfort to you that while you lost your house, nine other people in your position did not lose their house. There are many potential issues that you need to keep in mind. First and foremost,how much is your house worth as a homestead only protects $500,000 of equity. Second, if your wife were to unfortunately die, you become the sole owner of the house. Third, is the lender having you give a mortgage along with the guarantee? Fourth, do any loan documents seek to have you waive your homestead? I have seen too many people sign personal guarantees and not realize the consequences.



Great answer - Thank you - The lender has not asked for a mortgage or collateral yet. I have actually applied for a credit line against the home with a different bank for money to use as a down-payment on the business. I am concerned that the bank (business loan) or the current owner (owner financing also) may ask for a waiver of homestead. I have not retained a lawyer yet because the deal is still in the negotiation stages. I am curious if a creditor is allowed to ask for a waiver of homestead on a loan other than a mortgage for said property. As you can see, I will be into this over my eyeballs!

Herbert Weinberg

Herbert Weinberg


In a business deal, it is generally buyer beware. For what you have at stake, you should get an attorney on standby to look at anything you may be asked to sign and answer any questions you may have. Should not be too expensive as you will only pay if you actualy use the attorney. Good luck.

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