Facing Foreclosure? Behind on Payments? Owe More Than It's Worth?

You have more options than you think.

Blackleaf Group LLC is a licensed Florida real estate brokerage focused on distressed property: pre-foreclosure, short sales, homes that are underwater, and properties headed to the Clerk's auction. Broker Jorge Diaz has experience with foreclosure, short sale, probate and tax deed transactions across Miami-Dade, Broward and Palm Beach, and is an active investor in these same situations.

If you have received a default letter, been served with a foreclosure lawsuit, or already have a sale date, the most important thing you can do is act early. Every week matters.

Call or text 305-306-7848 · Request a confidential review

Who We Help

  • Homeowners who are behind on mortgage payments
  • Owners who are underwater (owe more than the home will sell for)
  • Owners who have received a breach letter, notice of default or lis pendens
  • Owners with a foreclosure sale date already set by the court
  • Heirs dealing with an inherited home that has a mortgage, back taxes or code liens
  • Sellers going through divorce, job loss, medical bills, relocation or a business setback
  • Owners with unpaid property taxes, HOA or condo association liens
  • Landlords with non-paying tenants and a mortgage they can no longer carry

You are not the first person in this situation, and there is no judgment here. Our job is to explain your options clearly and help you choose the one that protects you best.

Your Options When You're Facing Foreclosure

Every situation is different. These are the paths most Florida homeowners consider:

1. Catch up (reinstatement) or a repayment plan. If the shortfall is manageable, your lender may let you pay the past-due amount or spread it out.

2. Loan modification or forbearance. The lender changes the loan terms or pauses payments. This can work if your income has recovered.

3. Sell at market value. If you still have equity, a traditional sale can pay off the loan, stop the foreclosure and put money back in your pocket. Many owners in foreclosure have more equity than they realize.

4. Short sale. If you owe more than the home is worth, the lender may agree to accept less than the full balance. You sell, the lender is paid from the proceeds, and the foreclosure is avoided.

5. Deed in lieu of foreclosure. You transfer the home to the lender instead of going through the court process. Lenders usually want a short sale attempted first.

6. Let the foreclosure proceed. This is the outcome most owners want to avoid. It can mean a deficiency judgment, a longer credit impact, and losing any equity you had.

We'll walk through each option for your specific numbers. For legal questions, such as defending the lawsuit or bankruptcy, we'll refer you to a Florida real estate attorney.

Short Sales: How They Work

A short sale is when your lender agrees to let you sell the home for less than what you owe. It is one of the most effective tools for underwater owners, but it has its own rules, paperwork and timeline. That is where an experienced short sale broker makes the difference.

Step 1: Free review. We look at your loan balance, payment history, home value and hardship.

Step 2: Hardship package. We help you assemble what the lender requires: hardship letter, financial statement, income documents, bank statements and tax returns.

Step 3: List and market the home. We price it to attract a qualified buyer and get an offer the lender will accept.

Step 4: Negotiate with the lender. We submit the offer and package, follow up relentlessly, and push back on the lender's valuation when needed. If there is a second mortgage or HOA lien, those have to be negotiated too.

Step 5: Approval and closing. Once the lender issues written approval, the sale closes and the foreclosure is dismissed.

Why a short sale may be better than foreclosure

  • You stay in control of the sale and the timing
  • A short sale is generally viewed more favorably than a completed foreclosure
  • It may be possible to negotiate a waiver of the remaining balance (deficiency)
  • You may be able to buy a home again sooner
  • In most short sales, the seller pays no commission out of pocket. Fees are paid from the sale proceeds with lender approval.

Important: the deficiency. In Florida, a lender can seek a deficiency judgment for the amount still owed after a sale. A key goal in every short sale we handle is written lender approval that addresses the deficiency. Ask a Florida attorney to review any approval letter before you sign, and talk to a tax adviser about how forgiven debt is treated.

The Florida Foreclosure Timeline

Florida is a judicial foreclosure state, which means the lender must go through the court. A typical sequence:

  1. Missed payments. Late fees begin, and the lender contacts you.
  2. Breach / demand letter. Usually gives you about 30 days to cure the default.
  3. Lawsuit and lis pendens. The lender files a foreclosure complaint and records a notice against the property.
  4. Service and response. After you are served, you generally have 20 days to respond to the court. Don't ignore it.
  5. Judgment. The court enters a final judgment and sets a sale date.
  6. Clerk's auction. In Miami-Dade, Broward and Palm Beach, sales are held online by the Clerk of Court.
  7. After the sale. A certificate of title is issued and the new owner can seek possession.

You generally have options until the sale happens, but they shrink quickly as the date gets closer. Contact us as soon as you receive the first letter.

How South Florida Foreclosure Auctions Work

Miami-Dade, Broward and Palm Beach hold foreclosure and tax deed sales online through the Clerk of Court. The process moves fast, and the rules are different from a normal sale.

If you're the owner

  • The court sets the sale date in the final judgment, usually a few weeks out.
  • Until the sale happens, you may still be able to sell, refinance, reinstate or close a short sale.
  • At the auction, the home goes to the highest bidder, often well below market value.
  • If it sells for more than what's owed, the extra money may belong to you.
  • Once the sale is final, your options narrow quickly. Call us before the auction date, not after.

If you're the buyer

  • Bidding happens online, and winning bidders must pay a deposit and the balance on a strict deadline.
  • Properties are sold as-is, usually without an inspection or access to the inside.
  • Some liens and debts can survive the sale, so title research before you bid is essential.
  • Experienced buyers set a maximum bid in advance and walk away when the numbers don't work.

Auctions can be a good opportunity for buyers and a last chance for owners. Either way, a short conversation before the sale date can save you a lot of money. Ask us about an upcoming auction

Already Had a Foreclosure Sale? Check for Surplus Funds

If your home sold at auction for more than was owed, there may be surplus funds held by the Clerk that belong to you. Claims are time-limited. Be cautious of anyone who contacts you offering to "recover" these funds for a large percentage. Ask us or an attorney first.

Protect Yourself From Foreclosure Scams

Distressed homeowners are targeted by scams. Be wary of anyone who:

  • Asks for a large upfront fee to "save" your home
  • Tells you to stop talking to your lender or attorney
  • Asks you to sign over your deed or make payments to them instead of your lender
  • Guarantees they can stop the foreclosure

Blackleaf Group LLC is a licensed Florida real estate broker. We do not charge upfront fees to review your situation. For free housing counseling, you can also contact a HUD-approved housing counselor.

For Buyers: Distressed Property Opportunities

We also represent buyers looking for value in pre-foreclosures, short sales, bank-owned (REO) homes, probate sales and Clerk auctions across South Florida.

  • Short sales: expect longer timelines and lender approval. We manage the process and keep you informed.
  • REO / bank-owned: often sold as-is, with bank addenda and specific deadlines.
  • Foreclosure and tax deed auctions: we research title, liens, open permits and code cases before you bid, and help you set a realistic maximum.
  • Probate and estate sales: court approval and heirs' signatures may be required. We help coordinate.

Talk to us about buying

Frequently Asked Questions

Can a short sale stop a foreclosure? Often, yes, if the lender approves the sale before the auction date. Lenders may postpone a sale when a short sale is in progress, but it isn't guaranteed, so start early.

How long does a short sale take in Florida? Commonly 60 to 120 days from offer to closing, depending on the lender and whether there are second liens.

Do I have to pay anything to do a short sale? In most cases, no. The broker's commission and closing costs are paid from the sale proceeds with the lender's approval.

Will I owe money after a short sale? It depends on what the lender agrees to. We work to get the deficiency addressed in the written approval, and recommend an attorney review it.

I'm already in foreclosure. Is it too late? Not until the sale happens, but time is critical. Call as soon as possible.

I inherited a home with a mortgage I can't pay. What can I do? You may be able to sell it, assume it or do a short sale. Probate may need to be opened first. We'll explain the steps.

What if I have equity? Then selling before the auction may let you keep that equity instead of losing it. This is one of the most common situations we see.

Talk to a Distressed Property Broker Today

Confidential. No upfront fees. Straight answers.

Jorge Diaz, Broker · Blackleaf Group LLC Call or text 305-306-7848 · JD@TheBlackleafGroup.com Serving Miami-Dade, Broward and Palm Beach

Blackleaf Group LLC is a licensed Florida real estate brokerage. We are not attorneys or tax advisers and do not provide legal or tax advice. Results depend on each lender and situation. Consult a Florida attorney about your legal rights and a tax professional about the tax consequences of debt forgiveness.