Summer Special: Receive a $1500 bonus offer check if you contact us by July 4th!

Avoiding Foreclosure in Pennsylvania by Utilizing a Short Sale

A short sale is a type of real estate transaction in which the property is sold for less than the amount owed on the mortgage. This can happen when a homeowner is unable to afford their mortgage payments and the lender agrees to allow them to sell the property for less than what they owe. Short sales are a possible solution for pending foreclosure in the state of Pennsylvania.

Here’s an example:

  • Let’s say you owe $200,000 on your mortgage, but your home is only worth $150,000.
  • You’re unable to afford your mortgage payments, so you contact your lender and ask if they would be willing to approve a short sale.
  • If your lender agrees, you can sell your home for $150,000 and the lender will forgive the remaining $50,000 you owe.

Short sales can be a good option for homeowners who are facing foreclosure. They can help you avoid foreclosure, which can have a negative impact on your credit score. Short sales can also be a quick and easy way to sell your home.

The Disadvantages Of A Short Sale

However, there are some disadvantages to short sales. First, you may not be able to sell your home for as much money as you would if you were able to sell it for the full amount owed on the mortgage. This is because the lender will only approve a short sale if the sale price is enough to cover the outstanding balance on the mortgage, as well as any other fees or expenses associated with the sale.

Second, a short sale can damage your credit score. Even though a short sale is not technically a default on your mortgage, it can still show up on your credit report as a negative mark. This can make it difficult to qualify for a loan in the future.

Finally, a short sale can be a lengthy and complicated process. It can take several months to complete a short sale, and there is no guarantee that your lender will approve it.

The Advantages Of A Short Sale

There are a few advantages to a short sale. First, it can help you avoid foreclosure. Foreclosure can have a negative impact on your credit score and make it difficult to buy a home in the future. A short sale, on the other hand, although a short sale can still have a negative impact on your credit score, it typically is not as negative as a full foreclosure.

Second, a short sale can allow you to sell your home quickly. If you’re facing foreclosure, your lender may be willing to approve a short sale more quickly than they would a traditional sale. This can help you avoid the stress and uncertainty of foreclosure.

Third, a short sale can save you money on closing costs. When you sell your home through a traditional sale, you’re responsible for paying closing costs. However, when you sell your home through a short sale, your lender may agree to waive some or all the closing costs.

If you’re considering a short sale, it’s important to weigh the pros and cons carefully. You should also speak with a real estate agent and a financial advisor to get their advice on whether a short sale is the right option for you.

Summary of Pros and Cons of a Short Sale From Investopedia.


  • Allows homeowners to dispose of a debt that they are unlikely to repay.
  • Homeowners have to pay fewer fees than a typical home sale.
  • Short sales allow buyers to buy property at a discount.
  • Lenders may write off part of the debt as a loss.


  • Short sales come with fewer legal disclosures than a typical home sale.
  • There is more paperwork involved in a short sale.
  • Short sales can damage the seller’s credit rating, but less than a foreclosure.

Alternatives To A Short Sale In Pennsylvania

If you’re facing foreclosure, there are a few other options you may want to consider besides a short sale. These include:

  • Reinstating your loan: If you’re able to come up with the money to bring your mortgage payments current, you may be able to reinstate your loan and avoid foreclosure.
  • Negotiating a loan modification: Your lender may be willing to modify your loan terms, such as lowering your interest rate or extending the term of your loan. This can make your mortgage payments more affordable.
  • Filing for bankruptcy: If you’re unable to afford your mortgage payments and you’ve exhausted all other options, you may want to consider filing for bankruptcy. Bankruptcy can stop foreclosure, but it can also have a negative impact on your credit score.
We Buy Houses in Allentown PA

Selling Your Home to a Cash Buyer

You can utilize a professional “we buy houses” type company if you are doing a short sale on your home to avoid foreclosure. In fact, many lenders approve short sales to these types of companies if the amount is enough.

These companies are typically cash buyers, which means they don’t need to get financing to purchase your home. This can speed up the process of selling your home, which is important if you’re facing foreclosure. Additionally, these companies are often willing to pay more for homes than traditional buyers, which can help you get a better price for your home.

However, it’s important to do your research before working with a “we buy houses” company. Some of these companies may be predatory and try to take advantage of homeowners who are facing foreclosure. Make sure you understand the terms of the deal before you sign anything.

Here are some things to keep in mind when working with a professional home buying company:

  • Get everything in writing. This includes the purchase price, the closing date, and any fees or expenses that you’ll be responsible for.
  • Make sure you understand the company’s process. How will they market your home? How long will it take to close the sale?
  • Get references from previous customers. This will give you an idea of what to expect from the company.
  • Be prepared to negotiate. The company may not offer you the first price they mention. Be prepared to haggle and walk away if you’re not satisfied with the offer.

If you’re considering working with a “we buy houses” company, it’s important to do your research and understand the risks involved. However, if you find a reputable company that you can trust, they can be a good option for homeowners who are facing foreclosure.

Advantages Of Selling To A Professional Home Buyer

There are a few advantages to selling your home to a cash buyer. First, the transaction can be completed quickly. Cash buyers don’t need to get financing, so they can close on the sale much faster than a traditional buyer. This can save you time and stress.

Second, you will not need to do anything to your property to make it ready for the sale. Cash buyers are less picky about the condition of a home. They don’t require clean up, repairs, landscaping updates, or remodels. They may offer less than a traditional buyer, but they also may be able to help you avoid expenses and the long-term effects of a foreclosure.

Third, you won’t have to pay closing costs. When you sell your home to a cash buyer, you won’t have to pay any closing costs. This can save you thousands of dollars.

If you’re facing foreclosure, selling your home to a cash buyer may be a good option for you. It can be a quick, easy, and affordable way to sell your home and avoid foreclosure either by still utilizing a short sale with the professional home buyer, or just selling to them if you’re mortgage payoff amount is agreeable.

717 Home Buyers In Pennsylvania Can Help Guide You

If there is pressure to sell your house quickly due to illnessdivorce, or other issue, a professional home buyer is even more appealing. If you are looking at the possibility of a short sale, call us. We can help you move quickly and do not require updates, repairs, or cleaning. 717 Home Buyers can buy your property as-is and do so quickly. Often in as little as one week.

717 Home Buyers buys homes all over Pennsylvania like ReadingYorkHarrisburgand more. We purchase homes that are attractive, unsightly, in good condition, needing numerous repairs, having a lot of equity, and even having little to no equity. You can read more about how we operate here. We have many great Google reviews you can check out here. We never charge commissions or closing costs. If you’d like to find out how much we can pay for your property, please get in touch with us by calling 717-639-2164. We will give you a free no-obligation offer. You have nothing to lose by checking into this option.

About Josh Eberly

A native of Lancaster County, Josh’s roots run deep in his commitment to this community. He especially enjoys helping people find solutions through real estate. Josh is a seasoned investor with experience in many sides of buying and investing in real estate. Josh enjoys reading, listening to podcasts, digital marketing, and hanging out with his family. Feel free to connect with him here:

Get More Info On Options To Sell Your Home...

Selling a property in today's market can be confusing. Connect with us or submit your info below and we'll help guide you through your options.

What Do You Have To Lose? Get Started Now...

  • This field is for validation purposes and should be left unchanged.

Leave a Reply

Your email address will not be published. Required fields are marked *

Call Us!