Distressed Property Experience Since 2008

Short Sales, Foreclosure Options & Distressed Property Help in South Florida

Behind on your mortgage — or can see trouble coming? You have more options than most homeowners realize. Every one of them depends on acting before deadlines pass.

The short answer: Florida is a judicial foreclosure state, so the process runs through the courts and usually takes many months — long enough to execute an alternative if you start early. Your options, from strongest to last resort: reinstate or refinance, loan modification, an open-market sale (if you have equity), a short sale with a negotiated deficiency waiver (if you are underwater), or a deed in lieu. The one thing that shrinks every option is waiting.

This page covers the real estate side only. It is not legal or tax advice — decisions about foreclosure defense, bankruptcy, and debt forgiveness should involve a Florida attorney and a tax professional. We work alongside both every week and can refer you.

The broad sequence: missed payments → default notice from the lender → foreclosure lawsuit filed (lis pendens recorded) → you are served with a summons → court process → judgment → auction date. At every stage before the auction, alternatives may still be on the table — but each stage that passes narrows them.

In Florida, you generally have 20 calendar days to file a written response with the court after being served with a foreclosure summons and complaint. If no response is filed, the lender can seek a default, which accelerates the case toward judgment and auction. The 20 days run from the date you are served — not the date the lis pendens was recorded.

1Reinstate or refinance

If the setback was temporary, catching up the arrears or refinancing (where equity and credit allow) ends the problem outright.

2Loan modification or forbearance

Lenders would generally rather modify a loan than foreclose. Modifications can adjust rate, term, or move arrears to the back of the loan. Apply through your servicer’s loss mitigation department — and get every submission confirmed in writing.

3Sell the home on the open market

Here is what many struggling homeowners miss: if your home is worth more than you owe, you are not a short sale — you are a regular seller with equity to protect. South Florida values have risen substantially over the past decade, and many owners in default still have meaningful equity. A properly marketed sale pays off the loan and puts the remaining equity in your pocket instead of losing it to foreclosure costs and auction pricing. Start with a free look at what your home is worth — that one number determines your entire strategy.

4Short sale

If you owe more than the home is worth, a short sale asks the lender to accept a payoff below the loan balance. The lender must approve the price and terms, which adds time and paperwork — but a successful short sale generally does less long-term damage than a completed foreclosure and puts you, not the court, in control of the timeline. The two most important negotiation points are the deficiency waiver (see below) and the closing timeline.

5Deed in lieu of foreclosure

Handing the keys back by agreement. Sometimes appropriate when a sale is not viable, but it should be compared carefully against a short sale with professional advice — a short sale usually offers more negotiating room on the deficiency and the move-out timeline.

6Do nothing

The auction happens, the home sells (usually below market), your credit takes the full foreclosure hit, and any surplus or deficiency is sorted out by the court. This is the outcome every other option exists to avoid.

Not sure where you stand? Request a confidential Deficiency Exposure Review — we compare what your home would realistically sell for against your loan payoff and show you which options fit your numbers. No obligation, and your information is never shared. Request your confidential review here or call our direct line at (561) 395-8418.

Upfront feesdemanded before any service is performed.

“Stop talking to your lender”— legitimate help never cuts you off from your servicer.

Pressure to sign over your deed, often pitched as a “temporary” arrangement.

Guarantees that your home will be saved or your debt erased. Nobody can guarantee a lender’s decision.

Lowball cash contracts with assignment clauses that tie up your title while the “buyer” shops your contract to other investors.

1Opinion of value and hardship package

We establish what the home will actually sell for and help you assemble the lender’s required hardship documentation.

2List and market the home

like any other property — lenders approve short sales supported by real market exposure, not lowball private deals.

3Contract and lender submission

The buyer’s offer goes to the lender’s loss mitigation department with the full package.

4Negotiation

The lender orders its own valuation and responds. This is where experienced short-sale negotiation matters — on price, the deficiency waiver, and the closing timeline.

5Approval and closing

Once the lender issues written approval, the sale closes much like a normal transaction.

How many days do I have to respond to a foreclosure summons in Florida?

Generally 20 calendar days from the date you are served. Missing the deadline lets the lender seek a default. Consult a Florida attorney immediately about filing a response.

How long does foreclosure take in Florida?

Florida requires a court process (judicial foreclosure), so the timeline from first missed payment to auction is typically many months and varies with court schedules and how the case is contested. The practical point: the process is long enough to execute an alternative — if you start early.

What is a lis pendens?

The public notice recorded with the county clerk when a foreclosure lawsuit is filed. It means the case has begun — not that the home is lost.

Do I qualify for a short sale?

Broadly: you owe more than the home is worth, and you have a documented financial hardship. If you owe less than the home is worth, you don’t need a short sale — you're an equity seller, which is a far better position.

Can the bank come after me for the difference after a short sale?

Possibly — that is the deficiency, and Florida allows lenders to pursue it in many cases. A negotiated written deficiency waiver in the short-sale approval is the protection to aim for. Have an attorney confirm the final terms.

Will a short sale hurt my credit less than a foreclosure?

A short sale is generally viewed more favorably than a completed foreclosure, and future mortgage eligibility waiting periods are often shorter. Exact impact depends on how the lender reports it — confirm specifics with a credit or legal professional.

Should I just sell to a cash investor?

Get an independent opinion of value first. If you have equity, the open market almost always nets more. If you are underwater, the investor needs lender approval anyway — the same process, with less protection for you.

Can I sell after the lawsuit has started?

Yes — until the auction, you generally retain the right to sell, on the open market or by short sale. The further along the case, the tighter the timeline.

Start With Your Numbers — Confidentially

Every option on this page depends on two numbers: what your home is worth and what you owe. Get the first one free and confidentially. No obligation, no judgment, and your information stays private.