Call Monica Karcz with Redfin for details or to schedule a confidential consultation: 813-728-1400
When a mortgage becomes unaffordable, many Tampa homeowners assume foreclosure is the only outcome. It is not. For many sellers, a short sale is a better path, one that gives you more control, can be easier on your credit, and lets you move forward on your own terms. Here is how the two compare.
What Is a Short Sale?
A short sale is a sale of your home for less than what you owe on the mortgage and other liens. Because the lender receives less than the full payoff, it must approve the sale in writing. You stay in the home while it is marketed, a buyer makes an offer, and the offer is submitted to your lender with your hardship and financial documents.
What Is a Foreclosure?
Florida uses a judicial foreclosure process. The lender files a lawsuit in the county circuit court, records a lis pendens (a public notice of the lawsuit), and asks the court for a final judgment. If the lender wins, the home is sold at a public auction run by the Clerk of Court, which in Hillsborough County is held online.
Side-by-Side Comparison
- Control: In a short sale you choose your agent, help set the price and plan your move. In a foreclosure, the lender and the court set the timeline.
- Credit: Both hurt your credit. A short sale is usually reported less severely, and the wait before you can qualify for a new mortgage is often shorter. For example, Fannie Mae generally requires a four-year wait after a short sale compared with seven years after a foreclosure, with shorter periods possible for documented extenuating circumstances. FHA loans generally require about three years after either. Your lender will confirm the rules that apply to you.
- Remaining balance: In a short sale, your attorney can negotiate a written waiver of deficiency, meaning the lender agrees not to pursue you for what is left. After a Florida foreclosure, the lender may be able to seek a deficiency judgment.
- Privacy: A short sale looks like a normal listing. A foreclosure is a public lawsuit and a public auction.
- Relocation help: Some lender and investor programs offer relocation assistance to sellers who complete a short sale.
Why Timing Matters in Tampa
A short sale takes time. Lender review alone can take several weeks to a few months, and a pending short sale does not automatically stop a foreclosure case or sale date. The earlier you start, the more options you have. If you have already been served with foreclosure papers, contact a Florida attorney right away. In Florida, a homeowner generally has only 20 days after being served to file a response.
Is a Short Sale Right for You?
A short sale is usually worth exploring if your Tampa home is worth less than you owe, you have a real hardship such as job loss, divorce, medical bills or a move, and you can provide financial documents to the lender. You do not have to be behind on payments to ask. Read more on the Short Sale page, including the full 10-step process.
Talk With a Tampa Short Sale Agent
If you are behind on payments, have received foreclosure papers, or simply owe more than your home is worth, you do not have to figure this out alone. Monica Karcz, a licensed Florida real estate agent with Redfin, works with The Lyons Law Group, P.A., an attorney-owned title company, on short sale and pre-foreclosure sales across Tampa, Hillsborough, Pasco and Pinellas Counties.
Call or text 813-728-1400, book a confidential consultation, or fill out the short sale questionnaire and upload photos of your home.
This article is general information, not legal, tax, credit or financial advice. Short sale approval is at the lender’s discretion. Talk with a Florida attorney and a qualified tax professional about your situation.
