What Are Pre-Foreclosure and Short Sale Options?
Pre-foreclosure is the window between falling behind on your mortgage and losing your home at auction. During this time, you still own the property and you still have choices. A short sale is one of those choices – selling your home for less than what you owe, with the lender’s approval, to avoid the foreclosure process entirely.
Both buyers and sellers benefit from understanding how these transactions work. If you are a homeowner falling behind on payments, this page walks you through every option. If you are a buyer or investor looking for opportunities, you will find what to expect and how to evaluate distressed properties.
I am Barrett Henry, a Broker Associate with RE/MAX Collective serving the Tampa Bay area including Valrico, Brandon, Riverview, and Tampa. I handle short sale transactions, work with homeowners in financial distress, and help buyers evaluate distressed properties.
What Is Happening With Foreclosures in Tampa Bay Right Now?
Florida led the entire nation in foreclosure filings in 2025, with 0.44% of residential properties affected. In October 2025, the Tampa metro area posted the highest foreclosure rate among all U.S. metros with populations over one million. Roughly one in every 1,373 housing units faced a foreclosure filing.
Part of that spike was caused by a backlog of Hillsborough County filings being reported all at once, but the underlying financial pressures are real. Rising property insurance premiums, increasing property taxes, and higher overall ownership costs are squeezing Tampa Bay homeowners hard.
Foreclosure filings were reported on 367,460 U.S. properties in 2025, up 14% from 2024. While still 25% below 2019 levels, the trend is clear: foreclosure activity is normalizing and Florida is leading the way.
What Are Your Options If You Are Behind on Your Mortgage?
If you are behind on your mortgage or see trouble ahead, here are your options ranked from most to least desirable.
| Option | Best For | Credit Impact | Timeline |
|---|---|---|---|
| Loan Modification | Temporary hardship, want to keep the home | Minimal if approved | 30 to 90 days |
| Forbearance | Short-term hardship (job loss, medical) | Minimal during forbearance | 3 to 12 months pause |
| Sell With Equity | Home worth more than you owe | None | 30 to 60 days |
| Short Sale | Underwater on mortgage | 100 to 150 point drop | 3 to 6 months |
| Deed in Lieu | Lender agrees, no junior liens | Similar to short sale | 60 to 90 days |
| Bankruptcy | Multiple debts, need automatic stay | Severe (7 to 10 years on report) | Varies |
Loan Modification changes the terms of your existing mortgage to make payments more affordable. Contact your lender’s loss mitigation department as early as possible. Many lenders prefer modification over foreclosure because foreclosure costs them tens of thousands of dollars.
Forbearance is a temporary pause or reduction in payments that gives you time to recover. This is not forgiveness – you will need to repay the missed amounts. Forbearance works best when the hardship is temporary.
Sell If You Have Equity. If your home is worth more than what you owe, selling is often the smartest move. You pay off the mortgage, keep your equity, protect your credit, and move on. Get your home’s value here.
Short Sale – if you owe more than your home is worth, a short sale may be your best path. Your credit report shows “settled for less than full balance” rather than a foreclosure judgment, and you may qualify for a new mortgage in as little as 2 years. Read the full short sale guide.
Deed in Lieu of Foreclosure means voluntarily transferring ownership back to the lender in exchange for being released from the mortgage debt. Less damaging than foreclosure, but lenders do not always agree.
Bankruptcy triggers an automatic stay that temporarily halts the foreclosure process. Chapter 13 can allow you to catch up on missed payments over 3 to 5 years. Discuss this with a qualified attorney.
How Does the Florida Foreclosure Timeline Work?
Florida is a judicial foreclosure state, meaning the entire process goes through the courts. This gives homeowners more time and legal protections than non-judicial states. Read the detailed pre-foreclosure timeline and process.
The short version: after 3 to 6 months of missed payments, the lender files a Lis Pendens. You have 20 days to respond. Litigation can last 6 to 12+ months. After a final judgment, the auction happens within 20 to 35 days. The entire process can take 6 months to 2+ years.
Buying Distressed Properties in Tampa Bay
For buyers and investors, pre-foreclosure and short sale properties can offer significant value. Properties in distress often sell below market value, and short sale homes tend to be in better condition than bank-owned foreclosures because the original owner is typically still maintaining the property.
Expect longer timelines (3 to 6 months for short sales), as-is condition, bank approval requirements, and potential title issues. I work closely with Best Bay Services, a local handyman and home services company, to provide honest repair cost assessments before you commit.
Through the MLS and my professional network, I monitor distressed listings across Tampa Bay. I set up custom searches that alert you the moment a property hits the market. Search Tampa Bay homes for sale.
Key Takeaways
- Florida led the nation in foreclosure filings in 2025. Tampa posted the highest rate among major metros.
- Pre-foreclosure is a window of opportunity, not a death sentence. You still own the home and have choices.
- A short sale impacts your credit significantly less than foreclosure and gets you back into homeownership years sooner.
- Florida’s judicial foreclosure process gives homeowners 6 months to 2+ years of timeline.
- Buyers can find value in distressed properties with patience and an experienced agent.
Frequently Asked Questions
Can I sell my home after receiving a Lis Pendens in Florida?
Yes. As long as you hold title, you can sell. A Lis Pendens is a notice of a pending lawsuit, not a transfer of ownership. The foreclosure must be resolved as part of the sale, either by paying the full debt or through a lender-approved short sale.
How long does a short sale take in Florida?
Most short sales take 3 to 6 months from listing to closing. An experienced agent who packages the file correctly and follows up consistently can shorten that timeline significantly.
Will a short sale ruin my credit?
A short sale impacts your credit less than a foreclosure. Most people see a drop of 100 to 150 points, but recovery is faster. You may qualify for a new FHA mortgage in as little as 2 years.
Is Tampa Bay a good market for buying distressed properties in 2026?
With foreclosure volume increasing and Tampa leading major metros, distressed inventory is growing. For buyers with patience and experienced guidance, opportunities exist. Every property must be evaluated individually on location, condition, repair costs, and insurance.
Need Help With a Distressed Property?
Call Barrett for a confidential, no-pressure conversation about your options.
Barrett Henry, Broker Associate, RE/MAX Collective. Serving Valrico, Brandon, Riverview, Tampa, and the greater Tampa Bay area.
Related: How Short Sales Work in Tampa Bay | Understanding Pre-Foreclosure in Tampa Bay
Last Updated: February 2026