Underwater Mortgage

Can you sell a house in Florida if you owe more than it is worth?

Yes, but the sale price will not cover the loan, so the mortgage company has to agree to take less or you have to bring the difference. That agreement is called a short sale, and it has to be in writing before you sign anything.

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The short answer

Yes. Owing more than a house will bring does not stop you from selling it, but it changes who has to say yes. The lender holds the lien, so the lender decides whether to accept less than the payoff. Without that approval, a sale cannot close unless the difference is paid at the table.

Howler Property Group LLC, a Tampa-based company that buys Florida houses directly, publishes this guide. It is general information and not legal advice.

What is a short sale?

A short sale is a sale for less than the mortgage balance, with the lender's written approval. The seller sends the lender a hardship letter, financial documents and the buyer's offer. The lender then approves, counters or declines. Approval can take a long time and there is no promise of a result, so ask the servicer which department handles it and what they need.

What is a deficiency, and can the lender still come after you?

A deficiency is the part of the loan the sale did not repay. A short sale approval letter may say the lender accepts the proceeds as full payment, or it may reserve the right to pursue the rest. These are different outcomes. Get the wording in writing, and have a Florida attorney read it before closing. Debt that a lender forgives can also have tax consequences, so ask a tax professional.

What are the other options?

  • Keep the house and wait. If you can afford the payments, values and balances move over time.
  • Ask the lender about a loan modification or forbearance. Both are the lender's choice, and the terms vary.
  • Deed in lieu of foreclosure. You hand the deed to the lender to end the loan. The lender must agree, and it generally wants the property free of other liens.
  • Foreclosure. If nothing else is done, the lender can file a foreclosure case. See selling before a Florida foreclosure.

A HUD-approved housing counselor gives free advice on these choices, and a Florida attorney can explain your rights.

Do other liens matter?

Yes. Back taxes, code liens, HOA liens and judgments are paid ahead of you, and a short sale lender usually wants to know about them. See selling a Florida house with liens and selling with back taxes.

Where does Howler Property Group fit in?

Howler Property Group buys Florida houses as-is for cash. If you owe more than we could pay, we will tell you so plainly rather than waste your time, and we will say if a lender approval, a counselor or an attorney should come first. We do not promise that a lender will agree to anything.

Written 2026-10-27. This page is general information, not legal or tax advice, and we are not a law firm. For your own deadlines and rights, talk to a Florida attorney.

Related questions

Good Questions

Frequently asked

Can I sell my Florida house if I owe more than it is worth?
Yes, but the lender must agree in writing to accept less than the payoff, which is called a short sale, unless the difference is paid at closing.
What is a short sale in Florida?
A sale for less than the mortgage balance with the lender's written approval. The seller submits a hardship letter, financial documents and the buyer's offer for the lender to decide on.
What is a deficiency?
The part of the loan that the sale did not repay. An approval letter may release it or reserve the lender's right to pursue it, so get the wording in writing and have a Florida attorney read it.
Is a deed in lieu of foreclosure the same as a short sale?
No. In a deed in lieu you give the deed to the lender to end the loan, while a short sale is a sale to a third party. Both need the lender to agree.
Where can I get free help with an underwater mortgage?
A HUD-approved housing counselor gives free advice on options such as modification, short sale and deed in lieu.