A short sale occurs when you sell for less than your outstanding mortgage balance and your lender agrees to accept the proceeds as satisfaction of the debt. It's necessary when you're underwater on your mortgage and cannot make payments. The lender must approve the sale price and terms, which typically extends the timeline to 3-6 months. Seek legal and tax advice - forgiven debt may be taxable income.
From the seller playbook: Short Sale and Distressed Sale Procedures in New York
This is general information, not legal, tax or accounting advice. Every situation is different. Talk to a licensed attorney, accountant or tax professional before you act.
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