Signing a short sale agreement


A short sale may be a good option if you want to sell your home, but have no equity in the property to payoff the mortgage in full at closing. In today's economic environment, many homeowners find themselves underwater. Their homes are worth less than the outstanding amount of their mortgages. Simply walking away from the mortgage will create a foreclosure, sheriff sale and open the door for a deficiency judgment. If a deficiency judgment is obtained by the lender, they will be able to collect the remainder of the unpaid mortgage amount after sheriff sale.  

When you are unable to afford your house and the mortgage balance is greater than the value of the house, a short sale is one possible solution. In a short sale, you arrange to sell your house to a third party and the mortgage lender agrees to settle for less than what the lender is owed. By agreement, the mortgage lender typically foregoes their right to collect the unpaid mortgage amount in exchange for you bringing a buyer who will pay market value for the house. The advice and services of an experienced attorney like Michael Schwartz is essential to protect your interests and to avoid tax liabilities.

The Law Offices of Michael Schwartz has successfully handled a number of short sales for Pennsylvania homeowners. We will work to achieve a short sale as quickly as possible, while avoiding possible adverse consequences.


Our firm has relationships with a number of real estate brokers and mortgage lenders who are experienced in completing a short sale transaction. We can coordinate all aspects of the short sale, from negotiating the agreement with your lender to working with a real estate broker to finalize the sale. We will also pay close attention to any possible tax implications and will work to minimize or avoid potential tax liabilities.

Because Michael Schwartz is a lawyer, he is respected by mortgage lenders. When our firm calls, they listen. We will work to accomplish your short sale in an efficient manner, while minimizing the financial cost to you.


A short sale is one way to get out from under a burdensome mortgage, however, you may have other options. If you can no longer afford the home and have other debt, like credit cards and personal loans, a Chapter 7 bankruptcy may be good way to discharge your mortgage obligation and surrender the home. A Chapter 13 bankruptcy or a loan modification may provide debt relief while allowing you to keep your home. Only an experienced attorney can provide the objective advice you need to make the right decision.

Michael Schwartz can review your options and recommend the right solution for you.

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