A short sale happens when a homeowner sells their property for less than what they still owe on the mortgage, and the lender agrees to accept that lower amount as full or partial payoff of the loan. It requires lender approval and is most often used when the homeowner has fallen behind on payments and the home's market value has dropped below the loan balance.
Short sales in New York can take several months because the lender has to review and approve the sale terms before it can close. The process is more complex than a typical sale, but it allows the homeowner to avoid foreclosure — which carries far more serious long-term consequences for credit and future borrowing. Working with someone experienced in short sales is important, because small mistakes in the paperwork or negotiation can stall the entire process.