Brevard County · Selling
Owing more than the home is worth in Brevard County
A local agent and a free HUD housing counselor to talk through your options before anything else.
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Owing more on your home than it is worth can make you feel trapped. You may need to move for work, family or money reasons, and the math just does not work. Many people in this spot feel embarrassed, but it is common, and it says nothing about you as a person. Home values go up and down, and lives change.
There are real ways forward. Some people wait and keep the home, some work out a plan with their lender, and some sell in a short sale, where the lender agrees to accept less than what is owed. Each path has tradeoffs for your credit, your taxes and what you might still owe.
Before you decide anything, talk with a free HUD-approved housing counselor and a local agent who has handled short sales. You deserve to understand every option in plain words before you sign.
What’s different for you
- Talk to a free HUD housing counselor. They explain your options before you decide.
- Meet a local agent. They explain how a sale works when you owe more than the price.
- Your lender decides. In a short sale the lender must approve the price; it takes time, so start early.
When you start in CloseHive from this page, your plan already includes these steps, along with the usual ones for selling in Brevard County. You always see what to do next, and your agent handles the how.
What to know
What a short sale is
A short sale is selling your home for less than you owe, with your lender agreeing to accept the lower amount as payment. You cannot do it alone: the lender must approve the buyer's price and the closing numbers. If you have more than one loan on the home, such as a home equity line, each lender must agree.
It takes longer than a normal sale
After you accept a buyer's offer, the lender reviews your file, orders its own value check and decides. That review can take weeks or more, and buyers sometimes walk away while they wait. Starting early, and sending complete paperwork, helps.
Ask whether you will still owe the rest
The amount the lender does not get paid is called a deficiency. Ask, in writing, whether the lender's approval letter says it gives up the right to collect the rest. In Florida, a lender's court action to collect a deficiency after a foreclosure sale or a deed in lieu of foreclosure must be filed within one year, but the law's wording does not mention short sales. An attorney can review your approval letter.
Forgiven debt can be taxable
The IRS says canceled debt is generally taxable income, and a lender may send you Form 1099-C. A special exclusion for forgiven mortgage debt on a main home (qualified principal residence indebtedness) applied to debt canceled before January 1, 2026. IRS Publication 4681 says it does not apply to debt canceled, or agreements made, after December 31, 2025. Other exclusions, such as being insolvent (owing more than everything you own is worth), may still apply. Ask a CPA before you sign.
Your servicer must explain your options
If you are behind or about to be, your mortgage servicer must tell you about options to keep the home or to leave it. A short sale is one of them. The CFPB says a servicer generally cannot start foreclosure until you are more than 120 days behind.
Free counseling first
HUD-approved housing counseling agencies cannot charge you to help you explore your options. Call (800) 569-4287 to find one. They can help you build the hardship letter and budget lenders ask for.
Watch for people who want money upfront
The CFPB says you should not have to pay anyone to help you avoid foreclosure. Florida law also bars foreclosure-rescue consultants from collecting payment until they have fully done what they promised.
Your options
What to gather
- Latest statements for every loan on the home
- A written hardship letter: what happened and when
- Proof of income and recent bank statements
- Recent tax returns
- A monthly budget
- Your HOA contact and any amounts owed, if you have one
- Any letters from your servicer, kept in one place
- The name of a HUD-approved counselor and a local agent experienced with short sales
- A CPA's or attorney's review of the lender's approval letter before closing
Mistakes to avoid
- Stopping payments to qualify. Do not stop paying on purpose without talking to your servicer and a counselor. It can hurt your credit and start the foreclosure clock.
- Not reading the approval letter. Check whether it waives the rest of the debt and what it requires of you. Have an attorney look if you are unsure.
- Forgetting the second loan or HOA. Every lien holder must be paid or agree. Tell your agent about every loan and any HOA balance at the start.
- Assuming forgiven debt is tax-free. The main home exclusion ended for debt canceled after 2025. Ask a CPA about your situation.
Brevard County in numbers
- The typical home in Brevard County is worth about $339,600, and 77% of homes are lived in by their owners.
- Typical rent here is about $1,556 a month, including utilities.
Free help
Questions people ask
What is a short sale?
Selling for less than you owe, with your lender agreeing to accept the lower amount.
What is a short sale?
Selling your home for less than you owe, with your lender agreeing to accept the lower amount. The lender must approve the price and terms.
Will I still owe money after a short sale?
Maybe. Ask your lender to state in writing whether it waives the remaining balance. An attorney can review the approval letter with you.
Do I pay taxes on a short sale?
Forgiven debt is generally taxable income. The special exclusion for a main home does not apply to debt canceled after December 31, 2025, but other exclusions such as insolvency may. Ask a CPA.
How long does a short sale take?
Longer than a normal sale, because the lender must review and approve. Start early and send complete paperwork.
Is a short sale better than foreclosure?
It depends on your situation. A counselor can explain how each affects your credit, taxes and future plans.
Do I have to be behind on payments to do a short sale?
Not always. Lenders look at your hardship and finances. Ask your servicer what they need.
Who pays the agent's fee in a short sale?
It is paid from the sale at closing, and the lender must approve all closing costs.