Legal Question in Real Estate Law in Pennsylvania

Re: real estate/foreclosure

If the value of the property is less than the balance due on the mortgage, including all fees and charges of the lender, you will need the lender's written consent to any sale of the property. This is referred to as a "short sale".

Getting the consent of the lender takes longer than most agreements of sale provide until settlement, so your agreement will have to provide for the consent of the lender and the extra time that may be needed.

You also need to be sure that the proceeds of sale will be enough to pay all expenses of the sale. If there are other liens on the property besides the mortgage, those will also have to be paid off to clear the title you will convey to your buyer.

You should consult a lawyer to help with this. You may have other options, depending on the type and amounts of debt against the business, and also, possibly against you personally.