Short Sales in New York: 2025 Market Shifts Every Agent Should Watch

After years of relative calm, New York’s distressed property market is beginning to stir again—and agents and investors who understand short sales are already positioning themselves ahead of the curve.

Recent data reveals that while the state’s foreclosure activity remains moderate, the momentum is shifting fast.

- Metro New York Q1 2025: first-time foreclosure filings totaled 1,503, the quietest first quarter in five years (–7% YoY).

- Metro New York Q2 2025: filings rebounded, rising 6% YoY to 1,718, marking the most active quarter in nearly two years.

- NYC Q3 2025: first-time filings climbed another 16% YoY to 412, with Queens up 33%—the most active borough in the city.

- Statewide Q3 2025: 5,269 properties had foreclosure filings (1 in every 1,621 housing units).

- May 2025: 1,222 foreclosure starts statewide, with the NYC metro leading all major metros at 1,174 starts.

These aren’t catastrophic numbers—but they’re meaningful. For professionals who work in residential real estate, this shift signals that short sales are quietly coming back across New York.

Why the Numbers Matter

New York’s foreclosure pipeline has always lagged other states due to judicial timelines, but the pressure is building. After several years of pandemic-era protections and refinancing, many homeowners are now facing unaffordable resets on high-rate loans or past-due taxes.

For agents, this means:

- More listings with distressed sellers who still have strong motivation to sell before foreclosure.

- More opportunities to negotiate short sales before auction.

- And more buyers and investors looking for properties that can close below market but with less risk than at auction.

When handled correctly, a short sale can protect a homeowner’s credit, allow them to walk away without deficiency, and let the lender avoid a costly foreclosure. But for the agent or investor involved, the key is execution—and that’s where Crisp Short Sales steps in.

Helping New York Agents Close Short Sales Faster

At Crisp Short Sales, we specialize in helping real estate agents close short sales faster by handling the entire negotiation and approval process.

You keep your client. You keep your commission. We handle the lender.

Whether you’re an agent representing a homeowner in Queens or an investor making offers in Nassau County, our team ensures your file is packaged, submitted, and negotiated efficiently—with updates every step of the way.

Our process includes:

- Complete document prep and lender submission

- Weekly progress reports so you stay in control

- Direct communication with banks and servicers

- Faster approvals with our seasoned negotiators who understand Fannie, Freddie, FHA, and VA guidelines

If you’ve ever had a short sale stall or fall apart, you know how crucial it is to have an expert on your side. That’s why agents across the U.S. partner with us for short sale coordination and negotiation—so they can focus on what they do best: selling homes.

👉 Learn more about how we help real estate agents close short sales faster and what it means to have a partner who handles every lender conversation for you.

Investors: The New Window of Opportunity

For investors, these foreclosure metrics highlight a changing landscape. The increase in early-stage filings means more properties will hit the market where lenders are open to short payoffs—especially when repairs or valuation gaps make full repayment impossible.

By partnering with a professional short sale negotiator, investors can:

- Make stronger, cleaner offers banks are more likely to accept

- Get accurate lender feedback on required net proceeds before committing capital

- Close with fewer surprises and delays

Our platform streamlines everything from offer submission to final approval—so you can focus on finding the next deal, not chasing servicers for updates.

If you’re an investor or buyer’s agent seeking opportunities in New York’s evolving market, see how short sale negotiation support can give your offers an edge.

What’s Next for New York’s Market

Foreclosure filings in New York remain far below pre-pandemic highs, but the direction is clear. With rates holding steady and property values flattening, distressed sales will continue to rise through 2026. Agents and investors who can navigate these transactions—not avoid them—will win listings, clients, and profits others miss.

If you’re ready to get ahead of the next wave, now’s the time to strengthen your short sale network.

Start by seeing how Crisp Short Sales can help you start a new short sale file today and position your business for the next phase of the New York market.