Short Sales in Florida: A Plain-English Look at What They Are and Why You're Hearing More About Them

Florida short sales are climbing. It is not a flood, but it is enough that you should know how one works before you ever need it.

A short sale means selling your home for less than you owe, with your lender's sign-off. It is one way out when the payments are too heavy or the home is worth less than the loan. It is not the only way out, and it is not right for everyone. Here is what it is, how one starts, and when people start to consider it.

Are short sales really increasing?

Yes, from a small base.

• Nationally: A Realtor.com study found just over 28,000 short sales in 2025, about 0.6% of all home sales. That was up about 10% from 2024, and Q1 2026 was up about 16% from a year earlier.
• In Florida: Florida Realtors reported that single-family short sales closed in June 2026 were up 67% from June 2025. That is a big jump, but short sales are still a small share of all Florida sales.
• Foreclosure pressure: ATTOM data reported by News4JAX shows Florida had the nation's highest foreclosure rate in the first half of 2026, about 0.27% of housing units, with 27,494 filings. That is up about 33% from a year earlier. ATTOM's CEO said the national rise more likely signals a market returning to normal than a housing calamity, though it can mean more financial strain for some homeowners.

Short sales are also getting a second look because the numbers have shifted. Realtor.com reports that short-sale discounts have narrowed to about 20% from about 50% in 2022, and that for the first time since it started tracking in 2018, short sales are selling at a smaller discount than foreclosures.

How a short sale starts

It starts with your lender. Freddie Mac outlines the basic path:

1. Submit a hardship letter to your lender, with documents such as bank statements and bills.
2. Hire a real estate agent to represent you.
3. List the home and wait for offers.
4. Send offers to the lender. You cannot negotiate them yourself. Your lender and any other lienholders will negotiate on your behalf.
5. Close the sale if the lender agrees to a price.

The lender may review the price using a broker price opinion or an appraisal, and then issue an approval letter. That review takes time, so patience is part of the deal.

When homeowners start to consider one

The usual triggers are a hardship that makes the payment hard to keep up with, a home worth less than the loan, or both. Freddie Mac frames a short sale as an alternative to foreclosure for people who have run out of ways to stay in the home.

Timing matters too. Realtor.com reports that a borrower facing foreclosure can stay in the home without payments for an average of 592 days, and that is a big reason many people do not choose a short sale. A short sale ends sooner, and Realtor.com says a homeowner may qualify for a new mortgage in about four years, compared with about seven after a foreclosure. Freddie Mac gives a wider range of two to seven years, and notes that a short sale damages your credit, though less than a foreclosure. Realtor.com adds that many credit bureaus score the two similarly.

Questions to ask before you decide

I am a real estate agent, not an attorney, lender, or tax professional, so these are questions to take to the right people:

• Will I still owe money? If the lender accepts less than the balance, you may have to pay the gap, per Freddie Mac. Ask the lender how any remaining balance will be handled, and get the answer in writing.
• What about taxes? Forgiven debt may be treated as income and reported on a Form 1099-C, with some exceptions. Ask a tax professional how it applies to you.
• Are there other options? Your lender or a housing counselor can walk you through alternatives to selling.

Facing a payment you cannot keep up with, or owe more than your home is worth? Book a consultation with me. We will talk through where you stand and what a short sale would involve, with no pressure. Book a consultation