Yes. In Florida you can generally sell your house at any point before the foreclosure sale is completed. The lender is paid from the proceeds at closing, and any equity left is yours. If you owe more than it’s worth, a short sale may be the path.
Yes. In Florida you can generally sell your house at any point before the foreclosure sale is completed. The lender is paid from the sale proceeds at closing, and if there is equity left, it is yours.
Why selling can beat waiting
A completed foreclosure ends with your home sold at auction and serious damage to your credit. Selling first gives you control over the price, the timing, and what happens next.
How it works
Get your payoff. Ask your lender or servicer for the full payoff amount, including fees and interest.
Figure out your equity. Compare the payoff with what the home would sell for after costs.
Pick your path. List with an agent, sell to a cash buyer, or start a short sale if you owe more than it is worth.
Tell your attorney and the title company. Closing before the sale date takes coordination, and the lender typically dismisses the case after payoff.
If you have equity
You can list or sell for cash. The payoff comes out at closing, and you keep the rest.
If you owe more than it is worth
That is a short sale. The lender has to approve a price below the payoff. It takes longer, so starting early matters.
What to watch
The sale date. Once it is set, time is short.
Fees add up. Late fees, legal fees, and interest raise the payoff each month.
Get any deficiency waiver in writing. Have a Florida attorney review it.
What to do this week
Pull your payoff and any notices with dates. Send me the address and the numbers, and I will lay out what you would net each way.
Disclosure: I am a licensed REALTOR with eXp Realty, and I also invest in homes through my own company. If I am ever the buyer, I will tell you in writing before you decide.
Foreclosure deadline: Do not treat the auction, certificate of sale and certificate of title as interchangeable. Under Florida Statutes section 45.0315, redemption generally ends at the later of the filing of the certificate of sale or the time specified in the foreclosure judgment. A signed sale contract alone does not stop foreclosure. Have your attorney confirm the deadline and obtain any needed postponement.
General education, not legal, tax or investment advice. Discuss your circumstances with a licensed Florida attorney or tax professional. Yoganand Ganeshram PA, licensed Florida real estate agent with eXp Realty. Equal Housing Opportunity.
Originally published on Equity Edge Orlando. Reviewed for this Substack edition.