Legal Question in Real Estate Law in Pennsylvania

We are owed money for the previous sale of a townhouse.

We sold our townhouse in Pennsylvania in 1998 to a neighbor and agreed to carry a $20,000 note for 5 years. The buyer was to pay us interst payments monthly and the balance was due Feb 2003. At the time the balance was due, the buyer was not able to pay the entire amount back, sent us a check for $5,000 as a good faith and agreed to continue to pay the interest, with a guarantee of paying us back as soon as he could. We have not seen another $ since Feb, not the interest nor the priciple. We finally communicated last month that we wanted the money and offered a two payment plan to be completed by 1/31/2004! This communication went un-responded to. We have a signed contract for the original deal, but the extension in Feb. was oral. Our latest attempt to communicate was written. We are wondering what our options are legally (we warned we would take legal action if necessary). Thank you.


Asked on 11/05/03, 1:16 pm

1 Answer from Attorneys
Gerald Hershenson Law Office of Gerald M. Hershenson

Re: We are owed money for the previous sale of a townhouse.

More information is needed before legal advice can be given. Under Pennsylvania law a thirty day notice of default of a mortgage obligation must be sent to the debtor before a foreclosure action can be filed. A failure to send the notice would constitute a defense. At the very minimum a formal notice of default and intention to foreclose should be sent and a title search be done to determine what liens are filed of record. I do not know what type of arrangement you made with the buyer ie. mortgage, promissory note etc. If you just have a promissory note you can file immediately a legal action to collect. It is my recommendation that you have an attorney review this matter for you. If I can be of any assistence please let me know. Gerald Hershenson Esq. 215-579-9390

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Answered on 11/05/03, 2:15 pm


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