Remember that while a PDE might have whole families of solutions, in practice we often want to look at the solution(s) that satisfy certain initial and/or boundary conditions.
The Schwarzschild "black hole" is a specific case of a more general solution, that makes the following assumptions:
The system is spherically symmetrical about the (spatial) origin.
The system is not changing with respect to time.
The system "flattens out" in the limit as the distance from the origin goes to infinity.
Under these assumptions, you get the classic "rubber sheet with a mass on it" kind of behaviour in the solution, and the amount of distortion at a given point is a function of (a) how far the point is from the origin, and (b) how much mass is closer to the origin than the point (i.e. if the point is at distance $R$, then how much mass is at distance $r \leq R$).
If you look at that distortion function, then in fact as long as the mass is sufficiently spread out then the entire thing is smooth, with no discontinuities. The discontinuities only occur when the mass is sufficiently compact - specifically, when an amount of mass is present in a volume contained within its own Schwarzschild radius. Even then, with an appropriate change of co-ordinates you will still have a smooth metric everywhere (the Schwarzschild metric assumes that all of the mass is contained in a point at the origin which is why it has an unremovable singularity there, whereas other solutions that assume a broader distribution of mass can avoid that to some extent).