Falling behind on mortgage payments happens to more people than you’d think. The question isn’t really about blame, it’s about what you can do right now to fix it. And selling your Tampa house? That’s actually a totally viable option, even when you’re behind.
Here’s what you need to know about selling when those mortgage payments have gotten away from you. We’ll keep it simple and skip the financial jargon that makes your eyes glaze over.
What Will Happen When You Fall Behind on Mortgage Payments
Your lender gives you about 30 days of grace before the late notices start arriving in your mailbox. They’ll slap on some late fees, and your credit score takes a small ding, but nothing too dramatic yet.
At 60 days, expect more letters and phone calls. Your lender is still willing to work with you at this point because they’d honestly rather help you catch up than start foreclosure proceedings.
Things get real at the 90-day mark. That’s when your lender can officially start the foreclosure process in Florida. They’ll send you a notice of default, which is basically their way of saying this has gotten serious.
Florida law requires them to wait at least 120 days before filing actual foreclosure papers. The whole process typically takes around 135 days from start to finish. You’ve got time, but not endless amounts of it. Every day you wait means fewer options on the table.
Can You Sell a House Behind on Mortgage Payments in Tampa?
Yes, you can sell. You still own your home until the foreclosure is completely finalized, which means you have every legal right to sell it. You don’t need special permission from your lender in most cases. The only time you’ll need their approval is if you owe more than your house is worth and you’re trying to do a short sale.
Your lender actually wants you to sell because they don’t want to own your house. Banks are in the business of lending money, not managing real estate. When you sell, they get their loan paid off from the sale proceeds, and they avoid all the headaches and costs of foreclosure.
Any missed payments, fees, and interest come out of the sale price first, then the lender gets paid, and whatever’s left is yours. Many Tampa homeowners sell while behind on payments every year, so you’re definitely not alone in this.
How to Assess Your Tampa Home’s Financial Position
Before you can figure out the best way to sell, you need to know where you stand financially with your house. It all comes down to one question: do you owe more than your home is worth or less?
If Your Florida Home Is Worth More Than You Owe
This is the easier scenario. If your Tampa home’s current market value is higher than what you still owe on the mortgage, you’ve got equity. That equity is your ticket out.
You can sell the house and pay off the entire mortgage balance, plus all those pesky late fees and missed payments. You can still walk away with cash in your pocket. This is called a traditional sale, and it’s quite direct. You list the house, find a buyer, close the deal, and you’re done.
If Your House Is Underwater
Underwater means you owe more on your mortgage than your house is currently worth. This makes things a bit trickier, but it doesn’t mean you’re stuck.
You’ll need to pursue what’s called a short sale, where your lender agrees to accept less than the full amount you owe. They’re not always thrilled about it, but banks often prefer a short sale over foreclosure because foreclosure costs them even more money in the long run.
You’ll need their approval to make this work. It takes a bit longer than a regular sale, but it’s possible.
How to Sell Your Property When Behind on Payments in Tampa
You have three main options when it comes to actually selling your Tampa house. Each one works differently and fits different situations, so let’s see what fits for you.
Traditional Sale with a Real Estate Agent
This is the route most people think of first. You hire a Tampa real estate agent, and they list your house on the MLS. Potential buyers come look at it, and hopefully, you get offers.
The upside is that you’ll probably get closer to full market value for your home. The downside? It takes time. You’re looking at weeks or even months to find the right buyer, get through inspections, and make it to closing.
If foreclosure is breathing down your neck, you might not have that kind of time to spare. But if you do have a few months and your house is worth more than you owe, this can net you the most money.
Short Sale Option
Short sales are for when you’re underwater on your mortgage. You find a buyer willing to purchase your home, but the sale price won’t cover everything you owe the bank. Your lender has to agree to accept less than the full payoff amount and forgive the rest of the debt. They’ll want proof that you’re in genuine financial hardship and can’t keep making payments.
The process involves a lot of paperwork and waiting for the bank to approve everything. It’s slower and more complicated than a traditional sale, but it’s better than foreclosure. Your credit takes a hit with a short sale, but not nearly as bad as it would with a foreclosure on your record.
Selling to Cash Buyers
Cash home buyers in Tampa, FL, are investors or companies that buy houses fast for, well, cash. They make you an offer based on your home’s current condition, and if you accept, you can close in as little as a week or two. No repairs needed, or staging and open houses.
The catch is they’ll offer less than full market value because they’re buying for convenience and speed. But if you’re racing against foreclosure deadlines or you just want out fast, this can be your best bet. You get certainty, which sometimes matters more depending on your situation.
Steps to Sell Your House While Behind on Mortgage Payments
If you’re ready to move forward with selling, here are the actual steps you need to take.
Step 1: Contact Your Lender and Get Your Payoff Amount
The first thing you’ve got to do is call your lender and ask for a payoff statement. This tells you the exact dollar amount you owe right this second, including the original loan balance, all those missed payments, late fees, and whatever interest has piled up. You can’t make smart decisions without knowing this number.
The bonus is that when you tell your lender you’re actively working on selling, they might ease up on the foreclosure timeline a bit because they know they’re getting paid soon.
Step 2: Determine Your Home’s Market Value
You need to find out what buyers will actually pay for your Tampa house today.
A local real estate agent can give you a free market analysis by comparing recent sales in your area. Or you can hire an appraiser for a few hundred bucks if you want total accuracy. Even checking out what similar homes near you sold for on Zillow gives you a decent starting point.
You can match this number against your payoff amount to know if you’ve got equity to work with or if you’re in short-sale territory.
Step 3: Choose Your Selling Method
If you have equity and can afford to wait a bit, definitely list with an agent and try for top dollar. Underwater on the mortgage? You’re going the short sale route with your lender’s blessing.
If the clock is ticking fast and foreclosure is looming, a cash for houses company in Florida can have you closed and out in two weeks flat.
You should choose based on what you need most: time or money. Both matter, but one probably matters more to you right now.
Step 4: Prepare Your Tampa Home for Sale
What you do here depends entirely on how you’re selling. Going traditional with an agent means you’ll clean the place up, clear out the clutter, fix obvious problems, and make it look decent for showings. Short sale buyers want to see a house that’s cared for, too.
But if you sell to a cash buyer, you can literally leave it how it sits. They don’t care about the mess or the repairs. Just grab your stuff and go.
Step 5: Go Through the Sale Process
You’ve got an accepted offer, that’s awesome! Now it’s mostly waiting while lawyers and title companies do their thing.
At closing, the sale money goes straight to your lender first. They take their full cut to cover what you owe. If you’re doing a short sale, the lender has to sign off saying they’ll accept less and won’t chase you for the difference.
Once everything clears and papers are signed, you’re officially done. No more mortgage and stress about missed payments.
Alternatives to Selling Your Home in Tampa, FL
Selling isn’t your only move if you want to keep the house. There are ways to stop wasting money and stay put, though they all come with their own hassles.
Mortgage Forbearance
Think of forbearance as your lender agreeing to look the other way for a while. You get to pause payments or pay less temporarily while you sort out your money situation. Sounds great, however, you have to pay back every penny you skipped, usually in one big lump sum when the forbearance period ends.
This works if you’re expecting money soon, maybe you just started a new job, or you’re waiting on a settlement. But if nothing’s changing financially, forbearance just delays the inevitable.
Loan Modification
A modification actually rewrites your mortgage with new terms that work better for your budget. Your lender might drop your interest rate, stretch the loan out over more years to lower the monthly payment, or sometimes knock money off what you owe entirely.
You’ll have to prove you’re struggling financially and show you can handle the new payment amount. It’s not quick, and it’s definitely not guaranteed, but if they approve it, you get to stay in your house with payments that don’t wreck you every month.
Refinancing Options
Refinancing swaps your current mortgage for a completely new one with better terms and hopefully a lower payment. But the problem is that most lenders won’t touch you if you’re already behind because your credit’s banged up from the missed payments.
If you caught things early and your credit’s still decent, maybe a lender will work with you. But honestly, don’t hold your breath on this one. It’s worth asking about, but have a backup plan ready.
How Does Being Behind on Payments Affect Your Home Sale
Selling while behind on payments isn’t quite the same as a normal home sale. The missed payments change a few things, mostly around money and your credit. Here’s what actually happens.
Impact on Sale Proceeds and Closing Costs
Every dollar you didn’t pay your lender is taken out of your sale proceeds at closing. Those missed mortgage payments, the late fees they charged, and the extra interest that accumulated get deducted before you see a dime.
That means if you sell your Tampa house for $300,000, but you owe $250,000 on the mortgage plus another $8,000 in missed payments and fees, you’re walking away with $42,000 before closing costs even hit.
And yep, you’ve still got closing costs on top of that. These are title fees, transfer taxes,and maybe some repairs the buyer negotiated. The math can get really tight, which is why knowing your exact payoff amount matters so much.
Credit Score Implications
Your credit’s already taking punches from the late payments. Each missed payment drops your score, and the longer you stay behind, the worse it gets.
Selling before foreclosure actually helps limit the damage. A foreclosure on your record is not nice as it can tank your score by 100 to 200 points and stick around for seven years.
Selling, even through a short sale, hits your credit, but not nearly as hard. You’ll still see a drop, but it’s more manageable, and you can start rebuilding faster.
You really need to get the house sold before “foreclosure” becomes part of your credit history.
Common Mistakes Tampa Homeowners Make When Selling Behind on Payments
People make the same mistakes over and over when they’re trying to sell while behind on payments. Most of them are totally avoidable.
Waiting Too Long to Take Action
Homeowners wait and hope things will magically turn around, and before they know it, they’re staring down a foreclosure notice with almost no time left to sell. The earlier you start the selling process, the more control you have.
You can pick the best-selling method for your situation instead of being forced into whatever emergency option is available. Every month you wait, your options shrink, and your fees grow.
Overpricing the Home
When you’re behind on payments, you don’t have the luxury of testing the market with a high price and waiting for the perfect buyer. Some Tampa homeowners list their homes at top dollar because they need to cover all their debts and still walk away with cash.
The problem is that overpriced homes sit. And when you’re racing against foreclosure, time is literally money. Price it right from day one based on real comparable sales, not on what you wish it was worth or what you need it to be worth.
Not Exploring All Selling Options
A lot of people default to listing with a real estate agent because that’s what everyone does, without considering whether it’s actually the right move for their timeline. If foreclosure is two months away, spending six weeks waiting for showings and offers doesn’t make sense.
On the other hand, some homeowners jump straight to a cash buyer offering 20% below market value when they actually had time to list traditionally and get more money.
Look at all three options (traditional sale, short sale, and cash buyer) and pick the one that fits your actual situation, not just the first one someone suggests.
Ignoring Communication from the Lender
Those letters and calls from your lender aren’t going to stop just because you ignore them. Some homeowners avoid contact because they’re embarrassed or overwhelmed, but that’s exactly the wrong move.
Your lender wants to get paid, and they’d rather work with you than foreclose. Call them back and tell them you’re selling. Get that payoff statement and keep them updated. Being proactive can sometimes buy you extra time before they push the foreclosure forward.
Can You Buy Another Home After Selling While Behind on Payments?
Yes, you can buy another home eventually, but there’s a waiting period and some credit rebuilding to do first. How long you wait depends on how you sold and what kind of loan you’re trying to get.
If you sold through a traditional sale before foreclosure actually happened, you’re in better shape. Most conventional loans require a two to four-year waiting period after late payments, depending on how far behind you got.
FHA loans are a bit more forgiving. You might qualify in as little as two years if you can show the financial hardship is behind you, and you’ve rebuilt your credit.
If you went the short sale route, expect to wait at least two years for an FHA loan and three to four years for a conventional loan. You have to show the lenders that whatever knocked you off track, like job loss, medical bills, and divorce, are already resolved, and you’re financially stable now.
Your credit score matters just as much as the waiting period. Spend those years paying every bill on time, keeping credit card balances low, and avoiding new debt.
Lenders want to see that you’ve learned from the experience and you’re not a repeat risk. The better your credit looks when you apply, the better your interest rate and loan terms will be. It’s not a forever penalty. It’s just a timeout while you prove you’re back on solid ground.
Why Consider a Cash Offer
Cash buyers solve the time problem. When foreclosure’s breathing down your neck and you need out, waiting months for a traditional buyer to get mortgage approval and close just isn’t realistic. Cash buyers make an offer based on your house as it sits right now, and they can close in seven to fourteen days.
You’ll get less money than if you listed with an agent and waited for the perfect buyer, sure. But you get speed, which might be worth way more to you than an extra $10,000 or $20,000 if it means avoiding foreclosure completely.
Contact us to explore your options.
Frequently Asked Questions
Can I sell my house if I’m already in foreclosure in Tampa?
Yes, you can sell your house even after foreclosure proceedings have started, as long as the foreclosure sale hasn’t been finalized yet. You still own the property until the actual foreclosure auction happens. The tricky part is that you’re working against a tight deadline. Once you know foreclosure has started, you need to move fast. Contact your lender immediately and let them know you’re selling. Pursue the quickest-selling option available, which is usually a cash buyer. Traditional listings take too long when you’re this close to losing the house.
How long does it take to sell a house when you’re behind on payments in Tampa?
It depends entirely on which selling method you choose. A traditional sale with a real estate agent can take anywhere from one to three months, sometimes longer if the market’s slow. A short sale takes even longer because you’re waiting for lender approval on top of finding a buyer, so expect three to six months. Cash buyers are the fastest option by far. You can have an offer in hand within days and close in as little as seven to fourteen days. If foreclosure is looming, you need to close faster than getting top dollar.
Will selling my house stop foreclosure?
Yes, selling your house stops foreclosure as long as you complete the sale before the foreclosure is finalized. Once your lender gets paid from the sale proceeds at closing, the foreclosure process ends immediately because there’s no debt left to collect. You have to act before the foreclosure sale date. If you wait until the last minute, you might not have enough time to find a buyer and close the deal. Start the selling process as soon as you realize you can’t catch up on payments.
Do I owe taxes on a short sale in Tampa?
Sometimes. If your lender forgives part of your debt in a short sale, the IRS might consider that forgiven amount as taxable income. So if you owed $250,000 and your lender accepted $230,000 from the sale, that $20,000 difference could be taxable. However, there are exceptions. The Mortgage Forgiveness Debt Relief Act has been extended multiple times and might cover you, especially if the home was your primary residence. You’ll want to talk to a tax professional about your specific situation because tax laws change, and everyone’s circumstances are different.
Can I sell my Tampa house myself without a real estate agent if I’m behind on payments?
Yes. You can sell For Sale By Owner (FSBO) even when you’re behind on payments. You’ll handle the listing, showings, negotiations, and paperwork yourself, which saves you the agent’s commission. The downside is it’s more work, and you might not get as many buyers looking at your house since it won’t be on the MLS unless you pay for that separately. If you’re behind on payments, time is usually a bigger concern than saving commission, so most people either hire an agent or go straight to a cash buyer for speed. But FSBO is definitely an option if you’re comfortable handling it.
What’s the minimum equity I need to sell my house in Tampa?
Technically, you don’t need any equity to sell. That’s what a short sale is for. But if you want to do a traditional sale and walk away with money in your pocket, you need enough equity to cover your mortgage payoff, all the missed payments and fees, closing costs, and any real estate commissions. In Tampa, closing costs typically run about 2% to 3% of the sale price for sellers, plus another 5% to 6% if you’re using a real estate agent. So if you owe $200,000 total (including missed payments), you’d want your house to be worth at least $215,000 to break even, and more than that if you actually want cash at closing.
Key Takeaways: Selling Your House When Behind on Payments in Tampa, FL
You can sell your Tampa house even when you’re behind on mortgage payments, but you have to act fast. The sooner you start, the more options you have and the less damage to your credit. Figure out if you’re above water or underwater on your mortgage first because that determines whether you’re doing a regular sale or need your lender’s approval for a short sale.
If you need to sell fast and want a simple cash offer with no hassles, give Revival Homebuyer a call at (813) 548-3674. We buy Tampa houses in any condition, even when you’re behind on payments. Fill out the form below to get started.
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