“At any time before the later of the filing of a certificate of sale by the clerk of the court or the time specified in the judgment, order, or decree of foreclosure, the mortgagor or the holder of any subordinate interest may cure the mortgagor's indebtedness and prevent a foreclosure sale by paying the amount of moneys specified in the judgment, order, or decree of foreclosure”
The short answer: a short sale is a normal purchase that needs the seller’s lender to approve a price below the loan balance — you can inspect, you can walk, and you will wait. A foreclosure is a court process ending in a clerk’s auction where you bid without inspecting and pay a 5% deposit on the spot. A bank-owned (REO) property is what the lender lists after it takes title, and it behaves like an ordinary sale. The three are not interchangeable.
How does foreclosure work in Florida?
Florida is a judicial foreclosure state, which means a lender cannot simply sell the property — it has to sue. The borrower is served and may defend, which is why Florida timelines run long and why every step is a public record you can read before you bid.
If the lender prevails, the court enters a judgment and directs the clerk to sell the property at public sale on a specified day, which the statute sets at not less than 20 days nor more than 35 days after the judgment. At the sale the successful high bidder posts a deposit equal to 5 percent of the final bid with the clerk, with the balance due on the clerk’s terms. If no objections to the sale are filed within 10 days after the certificate of sale is filed, the clerk files a certificate of title — and that is the moment ownership actually transfers.
Until then the borrower can still stop it. Florida’s right of redemption, quoted on this page, runs until the later of the clerk filing the certificate of sale or the time set in the judgment. A bidder can prepare for weeks for an auction that is cancelled the day before, and there is no compensation for that.
Foreclosure, short sale and REO compared
| Courthouse foreclosure auction | Short sale | Bank-owned (REO) | |
|---|---|---|---|
| Who sells | The clerk of court, under a judgment | The owner, with lender approval | The lender, after taking title |
| Can you inspect? | No | Yes — ordinary inspection period | Yes — ordinary inspection period |
| Seller disclosure | None | Limited; the owner may have moved out long ago | Limited; the lender never lived there |
| Financing | Cash or cleared funds on the clerk’s terms | Conventional financing is possible | Conventional financing is possible |
| Deposit | 5% of the final bid, at the sale | Normal contract deposit in escrow | Normal contract deposit in escrow |
| Timeline | Set by statute: 20–35 days from judgment to sale | Set by the lender’s review; months is common | Ordinary contract timeline |
| Main risk | Title, liens, association arrears, occupants, condition | It falls through after months of waiting | Condition, and as-is terms with little flexibility |
| Who it suits | Experienced cash buyers with title support | Patient buyers with a backup plan | Most buyers, including financed ones |
General guidance for 2026, not legal advice. Foreclosure procedure is set by statute and by the judgment in the specific case; have a Florida real estate attorney or title professional review any distressed purchase.
What a short sale actually asks of you
Nothing moves until the seller’s lender agrees to accept less than it is owed, and that decision belongs to a loss-mitigation department with its own queue. The house is still the owner’s. You negotiate with them, sign a contract, and then wait — sometimes months — for an approval that may arrive with changed terms or not at all.
What you get in exchange is real: an inspection period, the ability to finance normally, and the right to walk away. What you need is patience and a plan B, because the most common outcome of an impatient short-sale buyer is a lost deposit on a different house they could have bought instead.
Two practical points. First, a lender approving a short sale is approving a price, not your loan, so keep your financing moving in parallel. Second, ask early whether there is a second mortgage or a home equity line — a second lienholder has to agree too, and that is where many short sales quietly die.
Where the money actually goes wrong: liens, arrears and occupants
The discount at an auction is compensation for risk, and in Miami-Dade three risks account for most of the losses.
Liens and the title picture. What survives a foreclosure sale depends on who foreclosed and the priority of the interests involved. A junior lienholder’s foreclosure does not wipe out a senior mortgage, and buyers have paid at auction for properties still carrying the first mortgage. This is the reason experienced bidders pay for a title search before the sale and never after.
Association arrears. On a condominium or an HOA property, past-due assessments and special assessments can be a significant sum, and the estoppel certificate is how you establish the number — Florida gives the association ten business days to produce one. Read our HOA vs condo association guide for what the documents must show.
Occupants. An auction purchase can come with people living in the property, and removing them is a legal process with its own timeline and cost. Budget for it or avoid the situation.
Is a distressed purchase worth it in this market?
Distressed inventory is a small share of Miami-Dade today — MIAMI REALTORS reported short sales and REO combined at 0.2% of closed transactions in July 2026 — so this is a thin, competitive niche rather than a reliable strategy. The people who do well at it are cash buyers with title support who can absorb a bad surprise, and they win by being disciplined about the walk-away number rather than by finding secret deals.
For most buyers, the better version of “below market” is an ordinary sale with something correctable wrong with it: an older roof, a dated kitchen, an open permit, a seller who needs a fast close. Those come with an inspection period, a disclosure and a financing contingency, and you can negotiate them.
What to do next
Start with the buying process so the ordinary path is clear, then read the Florida AS IS contract and inspection period — the inspection window is exactly what an auction denies you. If the property is a condominium, buying a condo in Miami after Surfside covers the document set that decides whether the building is a bargain or a liability. And before you commit to anything distressed, send us the address: reading a court file and a title picture takes us an afternoon and can save a year.
Frequently asked
What is a short sale?
A sale where the property is worth less than the mortgage balance, so the lender has to agree to accept less than it is owed. Nothing happens without that approval, the seller still owns the property throughout, and the timeline is set by the lender's review rather than by the contract. You can inspect the house, which is the main practical difference from an auction purchase.
How does foreclosure work in Florida?
Judicially. The lender files suit, the borrower is served and can defend, and if the lender prevails the court enters a judgment and directs the clerk to sell the property at public sale on a specified day — not less than 20 days nor more than 35 days after the judgment. The winning bidder posts a 5% deposit, and if no objections are filed within 10 days after the certificate of sale, the clerk issues a certificate of title.
Can I inspect a foreclosure before buying?
Not at the courthouse auction. Properties are sold as they stand, usually occupied or locked, with no access, no disclosure and no contingency. If you want an inspection, buy a bank-owned (REO) property after the lender has taken title, or buy a short sale — both are ordinary contract purchases with an inspection period.
What is the right of redemption in Florida?
The borrower's right to stop the sale by paying what the judgment specifies. Florida Statute 45.0315 allows it at any time before the later of the clerk filing the certificate of sale or the time specified in the judgment — and then says plainly that otherwise there is no right of redemption. Practically, a bidder can prepare for an auction that never happens.
Are foreclosures actually cheaper in Miami?
Sometimes, and the discount is payment for risk you are taking on: no inspection, no disclosure, possible occupants, and liens or association arrears that may survive the sale. Once you price a roof you have not seen, an air conditioning system you have not tested and a title you have not cleared, many auction 'bargains' land near market value.
Who pays the HOA arrears on a foreclosed condo?
It depends on who forecloses and what the declaration says, and it is the single most expensive surprise in Miami condominium auctions. Association arrears, special assessments and the estoppel balance must be established in writing before you bid — assume nothing, and have a title professional read the file.