A short sale is for homeowners who owe more than the home is worth and can document a hardship. It requires your lender's approval, because the lender is agreeing to accept less than full payoff.
The core requirements are underwater math (payoff higher than realistic sale price), a documented hardship such as job loss, divorce, illness, or death of a co-borrower, and a complete application package with a real buyer's offer. If you have equity, you do not need a short sale; an ordinary sale pays the loan in full and the balance is yours.
What matters most in the outcome is the deficiency waiver: written confirmation that the lender releases you from the shortfall. New Jersey lenders grant it routinely but not automatically, so it must be negotiated into the approval letter. Expect the process to take months, use an agent who has closed short sales before, and get every promise in writing. If your sale date is near, request an adjournment first so the short sale has room to close.
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Educational information, not legal advice. Your own court documents control your deadlines; a licensed New Jersey attorney can confirm what applies to your case.