1. Confidential consultation
We meet with you privately to confirm a short sale is the right path, review the mortgage(s), and explain the process — no judgment and no obligation.
Short Sale Process · Long Island
The Long Island Short Sale Process, Step by Step
A short sale is when a Long Island lender accepts less than the full mortgage payoff to release the lien at closing. This page walks through the full process — timeline, documents, and what to expect — from a CDPE-certified short sale brokerage with two decades of Long Island experience.
Overview
What is a short sale and how does it work on Long Island?
A short sale happens when a homeowner owes more on the mortgage than the home will sell for, and the lender agrees to accept the sale proceeds as full satisfaction of the loan. It is a sale of the home, not a foreclosure — the homeowner stays in control of the listing, the buyer, and the closing date (subject to lender approval of the final terms).
On Long Island, short sales are typically completed in 3–6 months from accepted offer to closing. The largest variable is the loss-mitigation review at the lender. We package the file the way servicers and investors expect to see it, which is the single biggest factor in a fast approval.
What to expect
The 6-step Long Island short sale timeline
2. Document gathering
The lender's hardship package: hardship letter, last 2 years of tax returns, 2 months of pay stubs and bank statements, signed authorization, and a financial worksheet.
- Hardship letter
- 2 yrs tax returns + 2 mo statements
- Lender authorization form
3. List, market & procure a buyer
We list on OneKey® MLS, market professionally, and procure a qualified buyer at fair market value supported by a BPO.
4. Submit the package to the lender
Full hardship package + executed contract + BPO go to the loss-mitigation department. We track the file daily and respond to every lender request within 24 hours.
5. Lender review & approval
Loss-mitigation review typically takes 60–120 days. The lender issues a written short sale approval letter with the terms (price, deficiency waiver, commissions, closing date).
6. Close & lien release
Once approved we close on the lender's required timeline — usually 30–45 days from approval. The mortgage is released at closing and the homeowner walks away free of the lien.
FAQ
Frequently Asked Questions
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Confidential, no-obligation consultation with East End Luxury Ltd. — CCIM, CDPE, MBA.