Yup! a Short Sale it is. I know of very good Short Sale Specialists in Brooklyn and Queens. If interested, contact me.
If your home is no more than 30% above market value, I have another option for selling that does not include a short sale. I can close within 90 days. Hear me out, it's worth a shot if a short sale will take too long or you are facing Foreclosure.
All the Best!