Florida Short Sale Process
FL short sale process: contact lender, list property, submit hardship package, obtain offers, lender review (BPO/appraisal), approval letter, and closing. Timeline: 3-6 months. Credit: "settled for less" (100-150 point drop vs. 150-250 for foreclosure). New mortgage: 2-4 years (FHA 3, conventional 4). Tax: forgiven debt may be income (1099-C). Exceptions: insolvency, MFDRA, bankruptcy. FL: no state income tax.
Process Steps
- Contact lender, list property
- Submit hardship, get offers
- Lender review, approval, close
Credit Impact
- 100-150 point drop
- Less severe than foreclosure
- New mortgage: 2-4 years
Tax
- Forgiven debt = potential income
- Insolvency exclusion available
- FL: no state income tax
Related Terms
- Foreclosure — Property sale
Barnes Walker Real Estate
Barnes Walker’s attorneys guide short sales in Florida. Request a legal inquiry for assistance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC