Wholesaling Short Sale Properties in Florida

The short answer

Can you wholesale a short sale property in Florida?

Yes, but the lender must approve the price, and many lenders restrict assignments or quick resales. Full disclosure to the lender is essential.

A short sale needs the lender’s written approval of the sale price and terms. Lenders usually require an arm’s-length affidavit and may limit resales within a set period. Hiding an assignment fee from the lender can be mortgage fraud. Disclose your role, or use a structure the lender approves. Our short sale wholesaling guide explains how to stay on the right side of the rules.

Florida allows lenders to seek a deficiency judgment for the unpaid balance after a sale. A good short sale approval letter waives that deficiency, which matters a great deal to the seller. If the home is owner-occupied and in foreclosure, Florida’s rescue fraud rules may also apply. Our deficiency judgment guide explains the stakes.

The opportunity

Why short sales create Florida wholesale deals

Owners who are underwater have few options. A short sale avoids a foreclosure on their record and, with a waiver, can end the debt. Lenders often accept it to avoid a long Florida foreclosure. In Broward and Palm Beach, many owners who bought near recent price peaks now owe close to or more than their homes are worth, especially after rising insurance and HOA costs pushed their monthly payments higher. Those owners often do not know a short sale is possible until someone explains it. Being the person who explains it clearly, and who helps them get a deficiency waiver, builds trust that turns into referrals.

Lead sources

Where to find short sale leads in Florida

• Foreclosure filings. Owners in foreclosure with little equity are short sale candidates. See our foreclosure timeline.
• Underwater owners. Data tools estimate loan-to-value ratios.
• Listing agents. Agents with short sale listings may need a reliable buyer.
• Loss mitigation contacts. Owners already talking to their lender may be open to a sale.
• Recent buyers in falling areas. Owners who bought near a price peak may owe more than the home is worth.

Your exit

Who buys short sale properties in Florida

Patient flippers and landlords are your buyers. Approval can take months, and the lender may counter. Choose buyers who can wait and still close. Ask for proof of funds up front, since the lender will want it with the offer, and keep the buyer updated during the review.

If the lender prohibits assignment, consider a double closing with full disclosure, or work with an agent on a fee structure the lender approves.

Step by step

How to start wholesaling short sale properties in Florida

1. Get authorization. Have the owner sign a third-party authorization for the lender.
2. Collect the package. Gather hardship letters, financials and the payoff.
3. Price it. Use the ARV calculator and the MAO calculator, expecting a lender appraisal.
4. Submit the offer. Send the contract and package to the lender’s loss mitigation team.
5. Negotiate. Respond to counteroffers and push for a deficiency waiver.
6. Disclose your role. Follow the lender’s arm’s-length and resale rules.
7. Close through title. Close with an investor-friendly title company before the approval expires.

A Pembroke Pines owner bought near a price peak, then lost income. She owed about $412,000 on a home worth about $385,000 that needed $40,000 of work.

You submitted her hardship package and an offer of $310,000. After an appraisal, the lender approved $318,000 and waived the deficiency in writing. You disclosed your role as the lender required.

A flipper closed at the approved price through a structure the lender accepted. The seller avoided foreclosure and walked away owing nothing.

Florida rules to know

Deficiency judgments and lender rules

Florida allows lenders to pursue a deficiency judgment for the balance left after a foreclosure sale, generally within a limited time. In a short sale, the approval letter decides whether the lender keeps that right. Always ask for clear waiver language, and have the seller’s attorney review it before closing if possible.

Lenders and federal programs often require arm’s-length affidavits and may restrict resales for a period after closing. Misrepresenting the transaction to a lender can be fraud. Read our arm’s-length transaction guide before you submit an offer.

Learn it with a mentor

Work short sales with patience

Short sales test persistence. Mentorship students send us the package and lender responses, and we help them push for approval and a deficiency waiver.

FAQ

Short Sale Properties in Florida: common questions

Keep going

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Read the full Florida wholesaling guide or pick another situation below.

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