Facing Foreclosure in Tampa Bay? Sell Fast and Protect Your Credit
If you have received a notice of default or a lis pendens, time matters. A cash sale can stop the foreclosure process, protect your credit, and put money in your pocket — instead of losing the home to the bank. With 23+ years of real estate experience, Barrett Henry has helped homeowners at every stage of foreclosure find a path forward.
Barrett Henry, REALTOR® & Broker Associate
REMAX Collective · 23+ Years Experience · e-PRO, MRP, SRS
Why Homeowners Choose Us
- Stop foreclosure proceedings with a fast cash sale
- Protect your credit score — avoid a foreclosure on your record
- We can close before auction dates in most cases
- Walk away with equity instead of losing everything
- We work directly with your lender to expedite payoff
- Short sale negotiation available if you owe more than the home is worth
How Foreclosure Works in Florida
Florida is a judicial foreclosure state, meaning your lender must file a lawsuit and go through the court system to foreclose. This process provides homeowners with significant time and legal protections — time that can be used to sell the property and avoid foreclosure entirely.
The Florida Foreclosure Timeline
The process begins when you miss payments — typically 90 to 120 days of delinquency before the lender takes legal action. The lender files a lis pendens (notice of pending litigation) with the county clerk and serves you with a foreclosure complaint. You have 20 days to respond. If contested, the case moves through the court system. In Hillsborough County, contested foreclosures average 8 to 14 months from filing to auction. Uncontested cases can move faster — sometimes 6 to 8 months. The key point: you can sell at any time before the clerk issues a certificate of sale after the auction.
What Is a Lis Pendens?
A lis pendens is a public notice filed with the Hillsborough County Clerk of Court that alerts potential buyers and lenders that the property is subject to a pending lawsuit — in this case, foreclosure. While a lis pendens does not prevent a sale, it does complicate traditional listings because most buyers' lenders will not finance a property with a pending foreclosure action. Cash buyers can still close because there is no lender approval needed on the purchase side. The lis pendens is satisfied and released at closing when the mortgage is paid off.
Florida's Right of Redemption
Under Florida Statute 45.0315, homeowners have the right to redeem the property (stop the foreclosure) by paying the full amount owed — including principal, interest, fees, and court costs — at any time before the clerk files the certificate of sale. Selling the property for cash and using the proceeds to pay off the lender accomplishes the same result. After the certificate of sale is filed, you have only 10 days to object to the sale.
How a Cash Sale Stops Foreclosure
A cash sale is the fastest way to stop foreclosure and protect your financial future. Here is how the process works step by step when you sell to us during foreclosure.
Step 1: We Make a Cash Offer Within 24 Hours
Contact us and we evaluate your situation immediately. We review the property, the mortgage balance, and the foreclosure timeline. Within 24 hours, you have a written cash offer with a clear net number — what you walk away with after the mortgage and any liens are satisfied.
Step 2: We Contact Your Lender
With your authorization, we contact your lender's loss mitigation department to obtain a payoff statement and confirm the timeline. Lenders generally prefer a sale over foreclosure because it costs them less — foreclosure proceedings cost lenders $50,000 to $75,000 on average. This motivation works in your favor.
Step 3: Title and Closing
We work with a title company experienced in foreclosure-related sales. The title company coordinates the payoff, releases the lis pendens, and ensures clear title transfer. We can close in as few as 7 to 14 days — well before most auction dates. At closing, the lender is paid in full, you receive any remaining equity, and the foreclosure case is dismissed.
The Credit Score Impact of Foreclosure vs. Selling
The financial consequences of a completed foreclosure extend years beyond losing the home. Understanding the credit impact makes the case for selling before the auction clear.
Foreclosure Stays on Your Credit for 7 Years
A completed foreclosure drops your credit score by 100 to 160 points and remains on your credit report for 7 years. During that time, you cannot qualify for a conventional mortgage (typically a 7-year waiting period), an FHA loan (3-year waiting period), or a VA loan (2-year waiting period). Renting can also become difficult, as many landlords reject applicants with foreclosures on their record.
Selling Before Foreclosure Protects Your Credit
If you sell the property and pay off the lender before the foreclosure sale, the foreclosure is dismissed and does not appear on your credit report as a completed foreclosure. Your credit will still reflect late payments, which typically lower your score by 30 to 60 points, but late payments are far less damaging than a foreclosure judgment. Most homeowners who sell before foreclosure can qualify for a new mortgage within 1 to 2 years.
| Factor | Completed Foreclosure | Sell Before Foreclosure |
|---|---|---|
| Credit score impact | −100 to −160 points | −30 to −60 points (late payments only) |
| Time on credit report | 7 years | Late payments: 7 years, no foreclosure mark |
| Wait for new conventional mortgage | 7 years | 1–2 years typical |
| Wait for FHA loan | 3 years | Often immediate with explanation |
| Impact on renting | Most landlords reject | Minimal — no foreclosure on record |
| Deficiency judgment risk | Lender may sue for balance | Eliminated if paid in full |
| Equity recovery | Zero — home goes to bank | You keep equity above mortgage balance |
Short Sale Option — When You Owe More Than the Home Is Worth
If your mortgage balance exceeds the home's current market value, a traditional sale cannot pay off the lender. In this situation, a short sale may be your best option to avoid foreclosure.
How a Short Sale Works in Florida
In a short sale, the lender agrees to accept less than the full mortgage balance to avoid the cost and time of foreclosure. The seller finds a buyer, the buyer makes an offer, and the lender must approve the sale price. Short sales in Florida typically take 60 to 120 days because lender approval adds time. However, the process stops foreclosure proceedings while the lender reviews the short sale package.
Florida's Anti-Deficiency Protections
Under Florida Statute 702.06, lenders can pursue a deficiency judgment (suing you for the remaining balance) after a foreclosure sale. However, as part of short sale negotiations, many lenders agree to waive the deficiency in writing. Barrett Henry works with lenders to negotiate deficiency waivers as part of every short sale. Getting this waiver in writing before closing is critical to protecting your financial future.
Tax Implications of a Short Sale
Forgiven debt can be treated as taxable income by the IRS. If a lender forgives $50,000 of your mortgage balance, you may receive a 1099-C for that amount. However, exceptions exist for primary residences under certain circumstances, and for homeowners who are insolvent (debts exceed assets). Consult with a tax professional about your specific situation — the tax impact of a short sale is almost always less severe than the financial damage of a completed foreclosure.
Free Foreclosure Prevention Resources in Florida
If you are facing foreclosure, several free resources can help — whether you decide to sell, modify your loan, or explore other options. These are government-funded programs with no cost to you.
HUD-Approved Housing Counselors
The U.S. Department of Housing and Urban Development provides free foreclosure counseling through approved agencies. In Hillsborough County, several HUD-approved counselors can review your situation, explain your options, and help negotiate with your lender. Call 1-800-569-4287 to find a HUD-approved counselor near you.
Florida Homeowner Assistance Fund
The Florida Homeowner Assistance Fund (HAF), administered by the Florida Housing Finance Corporation, provides financial assistance to eligible homeowners who experienced pandemic-related financial hardship. The program can help with past-due mortgage payments, property taxes, and insurance. Eligibility requirements include income limits and proof of financial hardship. Check floridahaf.org for current program availability.
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