At Poltielov Law PC, our New York short sales attorneys are devoted to providing personalized, solutions-focused guidance and support to clients. With experience in foreclosure defense and real estate law, it is our mission to help people find the best answer for their situation. If you have any specific questions or concerns about short sales, we are more than ready to help. To set up a free, fully confidential initial consultation, please contact us today.
As defined by Investopedia, a short sale is a home sale that is completed at a “price that is less than the amount due on the current owner’s mortgage.” This means that the lender may agree to take less than the total amount due on the loan in order to resolve the outstanding deficiency.
In New York, a short sale is generally negotiated with the mortgage company, starting with the homeowner submitting a hardship letter, financial documents, and a purchase offer from a buyer. The lender reviews the package, orders an appraisal, and decides whether to approve the sale, often taking 30-90 days for this step. If approved, the transaction closes, releasing the homeowner from the mortgage debt, though all lienholders must typically consent.
While a short sale is technically not a foreclosure defense, it is a potential solution for homeowners facing the risk of foreclosure, allowing them to sell the home for less than owed with lender approval.
Unlike foreclosure, where the lender controls the process through court and auction after 90+ days of notices, a short sale lets homeowners select agents and negotiate offers, often taking 3-6 months total. Credit impact is milder with a short sale (50-150 point drop vs. 200-300 for foreclosure), enabling faster recovery in 2-4 years.
A deficiency judgment occurs when foreclosure sale proceeds fall short of the mortgage debt, allowing the lender to pursue the borrower personally for the difference.
In New York judicial foreclosures, lenders must request it within 90 days post-sale via court motion, but the amount is capped at debt minus the property’s fair market value. Short sales often avoid this risk if the lender provides written assurance of no pursuit, though forgiven debt may trigger taxes. Contact Poltielov Law PC at (718) 520-0085 for protection strategies.
As the original mortgage lender is heavily involved in the process, short sales take longer than a traditional sale. By some measures, it takes an average of 45 days from the date a traditional home sale is agreed upon to the date that the transaction is closed. In contrast, it takes around 120 days from the date a short sale is initially agreed upon to until the transaction is closed.
A hardship letter is a letter drafted by a financially distressed (underwater) homeowner. It is sent to their mortgage company. The letter is generally used to explain the state of the current financial situation, including the challenges.
A hardship letter is a standard part of the overall loss mitigation process. Some lenders use a hardship affidavit as a supplement to or replacement for a hardship letter. Homeowners seeking to sell their property for less than the mortgage due (short sale) generally need to submit a compelling, well-supported hardship letter.
Short sales are complicated. Whether you are considering a short sale as an alternative to facing foreclosure or you are looking for how to find short sales for purchase, it is normal to have a lot of questions.
At Poltielov Law PC, we are highly experienced in foreclosure defense and real estate litigation. Our New York foreclosure attorneys and real estate attorneys are prepared to help you with all aspects of your short sale case.
At Poltielov Law PC, our New York short sale lawyers have the skills and experience that you can rely on. If you have questions about short sales, we can help. Contact us today to set up your free consultation. From our Queens office, we handle short sales throughout the region, including in Brooklyn, the Bronx, Manhattan, Nassau County, Suffolk County, and Westchester County.
