Real Estate Law – Short Sale of Property in New York
- A short sale is when your house has depreciated in value and the balance you owe the bank is greater than the value of the house.
- This has become more and more common lately.
- Once a price has been negotiated and contract prepared, the obligation is on seller or their attorney to contact the lender and get them to accept the net proceeds in order to pay off the loan.
- This alleviates the owner’s obligation and lets them get out of a bad situation.
- With an attorney’s assistance, you can often negotiate a full release of all financial obligations and ask that the lender not issue a 1099 for the differential.
This short informational real estate law video was provided by Arnold Drucker, an experienced Jackson Heights Real Estate Lawyer.