When it fits
The owner needs to sell, does not have enough equity for a normal closing, and still has enough time to prepare the package.
Your options
Short sales in NYC: when they make sense and how they work
A short sale means selling the property for less than the full mortgage payoff, with the lender agreeing to accept the proceeds and release the lien. It is not the first choice for everyone, but it can be a strong move when the home cannot realistically be kept and equity is thin or gone.
In practice, the work is part real estate sale, part lender package. The property has to be priced correctly, the hardship has to be documented, and the lender has to believe the approved sale beats the alternative.
Short sales are usually strongest when the owner wants to avoid the chaos of auction, reduce the damage of a long foreclosure case, and create a cleaner exit than simply waiting for the court calendar to run its course.
What slows it down
Incomplete financial paperwork, unrealistic pricing, and lender loss-mitigation departments that move slower than the owner expects.
What to do first
Find out the current payoff, the likely market value, and whether the court timeline still leaves enough room to negotiate approval.
Need to figure out whether a short sale is realistic?
The right first question is not whether the lender will say yes. It is whether selling now creates a better outcome than waiting.