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If you’re a New York City homeowner facing missed payments, mounting arrears, or a looming foreclosure, the right guide can make the difference between an orderly exit and a drawn-out, credit-damaging ordeal. As one of the go-to short sale specialists New York homeowners rely on, Daniel S. Colomban at Skyler Realty LLC helps sellers in New York, New York develop a clear, lender-approved path to closing—across co-ops, condos, and 1–4 family homes. With a hands-on approach that blends negotiation skill, neighborhood pricing expertise, and NYC-specific problem solving, Daniel and the Skyler Realty LLC team focus on minimizing deficiency risk, accelerating approvals, and preserving as much of your financial future as possible.
This guide explains how a short sale works in New York City, why local experience matters, and how Daniel structures successful outcomes in Manhattan, Brooklyn, Queens, the Bronx, and Staten Island.
New York’s real estate and foreclosure landscape is unique—and that makes specialized guidance essential.
Judicial foreclosure state: New York uses a judicial foreclosure process, which means court involvement and mandatory settlement conferences for many owner-occupied 1–4 family cases. Timelines can range widely, and managing that clock is critical to positioning your short sale before a sale date is set.
Co-op and condo complexities: In Manhattan and beyond, co-op board approvals, underlying building mortgages, flip taxes, and arrears create layers of approval and payoff requirements. Condos carry common charges and special assessments that must be addressed or negotiated.
Multiple lien environment: NYC owners often have first mortgages plus HELOCs, judgments, unpaid water and sewer charges, Department of Finance liens, ECB violations, or HOA/condo arrears. Coordinating and prioritizing these with your primary lender is a specialized skill.
Transfer taxes and closing norms: New York State and New York City transfer taxes, plus mansion tax thresholds for buyers, are part of the short sale math. Short sale specialists New York homeowners trust know how to structure a net sheet that lenders accept within these realities.
Hyper-local pricing: A bank’s broker price opinion (BPO) won’t always account for block-by-block differences—think a renovated walk-up in the East Village versus a similar unit on a quieter Nolita street, or a South Slope brownstone versus one west of Fourth Avenue. Local comps can make or break approval.
Daniel S. Colomban’s NYC focus means your strategy reflects real neighborhood values, realistic timelines, and the documentation expectations of the major servicers that dominate the New York market.
A short sale is a lender-approved sale for less than the mortgage payoff, in exchange for releasing the lien. Here’s how Daniel typically guides clients:
Determine property type: Co-op, condo, or 1–4 family affects approvals and lien handling.
Pricing and market positioning
Pricing targets aim to attract real buyers fast while aligning with what the bank is likely to accept.
Lender authorization and short sale package
Assemble the package: hardship letter, financials, tax returns, pay stubs, bank statements, mortgage statements, HOA/management statements, proof of any additional liens, and listing agreement.
Go live and market with intention
Tailored marketing reaches qualified NYC buyers and investors who can pass co-op boards or close on financing in a condo or 1–4 family. In many cases, cash or strong preapproval makes approval smoother.
Offer selection and net sheet
Daniel vets offers for strength and feasibility, then prepares an estimated closing statement (ALTA/HUD-1) showing your lender the net after transfer taxes, legal fees, management payoffs, arrears, and broker compensation.
Negotiation with all lienholders
For co-ops and condos, he obtains payoff letters for maintenance/common charges and any assessments.
Approval letter and conditions
The approval outlines net proceeds, closing deadline, deficiency language, and whether relocation assistance is provided. Daniel pushes for deficiency waivers when possible.
Closing coordination
New York is attorney-driven. Daniel collaborates with your attorney, the buyer’s attorney, the title company (or co-op transfer agent), and the servicer’s closing department to hit the approval’s deadline.
Post-closing guidance
Note: This is general information, not legal or tax advice. In New York, retaining an attorney is customary and strongly recommended.
Short sale success hinges on a clean, complete file. Daniel helps you compile and present:
Negotiation highlights: - BPO alignment: Daniel supports value with bracketed comps and condition notes, anticipating the BPO and correcting inaccuracies promptly. - Net optimization: He structures seller-paid and buyer-paid costs under lender rules to achieve a realistic net. - Deficiency and relocation: Where possible, he negotiates deficiency waivers and explores relocation assistance or “cash for keys” programs offered by some servicers.
Co-ops: You’re selling shares with a proprietary lease. Board approval is mandatory for buyers, and building policies on sublets, financial ratios, and post-closing liquidity matter. Expect flip taxes, move fees, and arrears payoff requirements. If there’s an underlying building mortgage, the managing agent’s payoff protocol must be followed.
Condos: Title transfer is more straightforward than co-ops, but common charge arrears and special assessments must be resolved. Lenders will require payoff letters from the managing agent. Investors are often strong buyers where rental caps allow.
1–4 family homes: For brownstones, townhouses, and attached homes in neighborhoods like Bedford-Stuyvesant, Jackson Heights, or Throgs Neck, property condition and open violations can influence BPO outcomes and buyer financing. Daniel anticipates Department of Buildings issues, open permits, and certificate-of-occupancy questions.
Mixed-use: Ground-floor retail with residential above demands a careful buyer pool and lender who accepts mixed-use risk. Expect a more rigorous underwriting path and longer approval windows.
Approval timeline: Nationally, short sale approvals can take 60–120 days. In New York, coordinating multiple lienholders and building approvals often pushes that to 90–180 days. Co-ops add board calendars to the mix.
Credit impact: A short sale may be reported as “settled for less than full balance.” It typically impacts credit less than a completed foreclosure. Exact score changes vary by profile and payment history.
Buying again: Conventional guidelines often require a waiting period after a short sale—commonly in the 2–4 year range depending on the program and circumstances. FHA/VA timelines vary. Programs evolve, so confirm with a New York-based lender.
Deficiency judgments: In New York, lenders can pursue deficiencies unless expressly waived. Daniel focuses on approval letters that release the lien and, where feasible, waive deficiency to protect your future.
Taxes: Forgiven mortgage debt can be taxable as cancellation of debt income, though federal rules sometimes allow exclusions for qualified principal residences subject to limits and conditions. New York State treatment may follow federal law in many cases. Always consult a CPA.
NYC-first pricing precision: Daniel builds a comp set that mirrors what a lender’s BPO agent will see—by block, renovation level, building profile, and buyer pool realities—so your list price and final offer hit the bank’s sweet spot.
Lien coordination: From HELOCs and HOA arrears to municipal water/sewer and judgment creditors, Daniel sequences negotiations so the primary lender sees a workable net and timing.
Co-op and condo fluency: Managing agents, board packages, and flip taxes can derail inexperienced agents. Daniel anticipates each document and deadline so approvals don’t expire mid-process.
Communication discipline: Weekly file updates, prompt responses to lender requests, and proactive resolution of BPO disputes keep your case moving.
Buyer curation: Not every “high” offer closes. Daniel emphasizes buyers who clear board and financing hurdles and can meet the lender’s closing deadline, protecting you from approval lapses.
Team-based closings: New York’s attorney-driven closings demand alignment. Daniel works hand-in-hand with your attorney, the buyer’s counsel, title, and management to compress timelines.
Manhattan: In neighborhoods like the Upper East Side, Midtown West, and the Financial District, co-op rules dominate much of the resale market. Short sale buyers tend to be well-qualified owner-occupants or cash buyers comfortable with board packages and post-closing liquidity standards. In newer condo corridors—Hudson Yards, Billionaires’ Row-adjacent blocks, and parts of Lower Manhattan—investors enter the mix, but common charge levels and taxes must pencil out.
Brooklyn: Brownstone belts in Park Slope and Cobble Hill attract end users who value condition and curb appeal; BPOs heavily weigh recent renovated trades. In Bedford-Stuyvesant, Crown Heights, and Bushwick, 2–4 family investor demand is strong, but violations and tenancy status can affect both price and lender appetite. Williamsburg and DUMBO condo comps are sensitive to amenity level and carrying costs.
Queens: In neighborhoods like Astoria, Long Island City, Jackson Heights, and Forest Hills, buyer pools vary from first-time condo buyers to investors targeting favorable rents. Co-op packages remain rigorous in many prewar buildings. Parking availability, transit access, and school zones can materially shift BPO conclusions.
The Bronx: Throgs Neck, Pelham Bay, and Riverdale offer a mix of co-ops and 1–4 family homes. Condition and occupancy status drive investor vs. end-user appeal. Utilities, water/sewer arrears, and any open violations must be addressed early.
Staten Island: 1–2 family homes dominate, with buyers focused on condition, flood zone considerations in some coastal tracts, and commute options. BPOs respond to recent sales within tight micro-markets.
Daniel’s approach is to model your property against the buyer set most likely to close under short sale constraints, then negotiate approval terms around that reality.
Loan modification: If income has stabilized, a modification can lower payments and capitalize arrears. This can preserve ownership and credit better than a sale.
Forbearance to modification: Temporary hardship? A forbearance may bridge to a permanent solution.
Deed in lieu: If marketing fails or timing is too tight, surrendering the property in exchange for release can be faster than foreclosure. Lenders often still require full title work and lien resolution.
Refinancing or partial claim: In limited cases, a refinance or partial claim option may address arrears.
Bankruptcy considerations: Chapter 13 can structure arrears and pause foreclosure. This requires legal counsel.
Daniel evaluates these pathways with you and your attorney so you choose the option that best protects your long-term goals.
How long does a short sale take in NYC? Expect 3–6 months on average once you have a signed offer, longer with multiple liens or co-op approval steps. Daniel aims to compress this with early packaging and weekly lender follow-up.
Can I receive relocation assistance? Some servicers offer relocation funds at closing. Eligibility varies by investor guidelines and property status. Daniel will ask for it, but it’s not guaranteed.
Will the bank forgive the difference? Sometimes. Approval letters specify release terms. Daniel pushes for deficiency waivers; outcomes depend on investor policy and file strength.
Do I have to be behind on payments? Not always, but lenders typically require a documented hardship and proof you cannot sustain payments or cure arrears. Each investor’s policy differs.
What if I have a second mortgage or HELOC? It’s common in New York. Daniel negotiates with junior lienholders for reduced payoffs consistent with primary lender limits.
Are co-op short sales possible? Yes, but they require board approval and managing agent coordination. The buyer must meet board financial standards and timing must align with the short sale approval window.
How will this affect my taxes? Forgiven debt may be taxable, though certain exclusions can apply to qualified principal residences. Consult a New York-savvy CPA for current rules.
If you’re searching for short sale specialists New York homeowners can trust, Daniel S. Colomban at Skyler Realty LLC is ready to help you evaluate your options, organize the right strategy, and negotiate directly with your lender. Whether you own a co-op in the Upper East Side, a condo in Long Island City, a brownstone in Bed-Stuy, or a 2–3 family home in Staten Island, Daniel brings NYC-specific expertise, steady communication, and lender-savvy negotiation to every file.
A confidential conversation is the first step. Daniel will review your hardship, timeline, and property type, outline realistic next steps, and help you move forward with clarity.
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