Pre-Foreclosure in Orlando: Your Options (Short Sale vs Cash) — 2025 By People’s Industry Investments — Orlando cash buyers & licensed real estate prosHeads-up: This is general info, not legal advice.

• You usually have time. Servicers generally can’t start a foreclosure until you’re 120+ days delinquent. Use that window to request help. Consumer Financial Protection Bureau+1

• Once served, act fast. In Florida’s judicial system, you typically have 20 days to respond to the foreclosure complaint. Florida Bar

• Sale scheduling: After a final judgment, the clerk sets the sale 20–35 days later (or later with plaintiff consent). Online Sunshine

• Redemption ends: Your right to “redeem” (cure/pay off) generally ends when the certificate of sale is filed. Online Sunshine

• Deficiency exposure: In Florida, lenders can seek a deficiency; they have 1 year to file after the foreclosure sale/deed-in-lieu for 1–4 unit residential, and any deficiency on an owner-occupied home is capped by statute (judgment/ debt vs fair market value). Negotiate waivers in writing—especially on a short sale. The Florida Senate+2Nolo+2

First moves (the “don’t-miss” checklist)

1. Call your servicer’s loss-mitigation line and state you’re seeking assistance (repayment plan, forbearance, loan mod). Under Reg X, complete applications trigger timelines and protections. Consumer Financial Protection Bureau

2. Open all mail and track deadlines (20-day lawsuit response; any loss-mit requests from your servicer). Florida Bar

3. Get a real valuation & exit plan: “Cash Now” vs “List to Net” vs “Short Sale.” We’ll run both numbers for your address.

4. Beware scams: No one should ask you to wire fees to individuals or deed your home without paying off the loan.

Your main options (ranked by speed vs. net)

1) Reinstate or modify the loan (keep the house)

• Reinstatement: Pay arrears + fees before sale; foreclosure pauses.

• Repayment plan / Forbearance / Modification: Servicer-approved plans that catch you up or change terms. Apply ASAP (the 120-day rule and Reg X review timelines matter). Consumer Financial Protection Bureau+1

2) Sell before the sale — two paths

A) Sell for cash (fastest, highest certainty)

• Close in 7–21 days when title is clear. We can align with your move-out and pay off the loan at closing.

• Great when the home needs work or you’re close to a sale date.

B) List on the MLS (often highest net)

• If time allows, a sharp MLS launch can beat cash on net—if you price to the market and the home can clear appraisal/insurance.

3) Short sale (owe more than the home is worth)

• You list or accept a purchase offer below the loan payoff and your lender approves the sale.

• Deficiency: Florida allows deficiencies, but you can negotiate a deficiency waiver in writing; for owner-occupied properties, any court-entered deficiency is limited to the gap between (a) the judgment amount (or outstanding debt in a short sale) and (b) fair market value on the sale date. Online Sunshine+1

• Expect to document hardship; approval can take weeks. We structure offers lenders accept.

4) Deed-in-Lieu of Foreclosure

• You deed the property back to the lender with written terms; often conditioned on clear title and vacancy.

• Deficiency exposure still exists unless the agreement waives it—get that in writing. (The lender still has 1 yearpost deed-in-lieu to sue if no waiver.) The Florida Senate

What to know about Florida’s timeline

• Judicial foreclosure: You’re sued; you (typically) have 20 days to answer. Summary judgment can follow; if the lender wins, the court sets sale 20–35 days out. Florida Bar+1

• Redemption: You can cure/pay off until the clerk files the certificate of sale (or any later time stated in the judgment). Online Sunshine

• Deficiency clock: For 1–4 unit residential, lenders generally have 1 year after the certificate of title (or deed-in-lieu) to file for a deficiency. The Florida Senate+1

Short sale vs cash: which is better for you?

Factor	Short Sale	Cash Sale (Pre-sale)
Speed	Slower (bank approval)	Fastest (7–21 days typical)
Certainty	Medium (bank may counter/deny)	High (no appraisal/loan)
Impact on credit	Missed payments still report; “paid for less than owed”	Missed payments still report; standard payoff
Deficiency risk	Negotiate waiver (not automatic)	None if loan fully paid off; short payoff needs written waiver
Best when	You’re underwater and have time to get approval	You have equity or need a date-certain exit

Q&A (concise answers with statutes)

Q: How long before a bank can start foreclosure?A: Servicers generally can’t make the first foreclosure filing until you’re more than 120 days delinquent. Consumer Financial Protection Bureau

Q: I was served. How long to respond in Florida?A: Typically 20 days from service to file a written response with the court. Florida Bar

Q: When is the foreclosure sale scheduled?A: The court’s final judgment sets sale no sooner than 20 and no later than 35 days after judgment (unless the plaintiff consents to more). Online Sunshine

Q: Do I have a right to redeem after the sale?A: Your right of redemption ends when the clerk files the certificate of sale (or at a later time stated in the judgment). Online Sunshine

Q: Can the bank sue me for a deficiency in Florida?A: Yes, but for 1–4 unit residential they generally have 1 year to file; for owner-occupied homes, any deficiency is capped by statute based on fair market value at the sale. Get short-sale waivers in writing. The Florida Senate+1

How we help Orlando homeowners (fast clarity, zero pressure)

• Two signed numbers in 24 hours: Cash Now vs List to Net (and a Short-Sale backup if underwater).

• Timeline control: We coordinate title, payoffs, and any loss-mit docs so you hit the dates that matter.

• If you’re close to a sale date: We can buy before auction and stop the sale once the payoff funds.

People’s Industry Investments (Orlando, FL)Cash offers • Realtor services • Land & development