Considering the significant decline in home market values as well as the enduring problem of high unemployment rates statewide, it is not surprising why a lot of homeowners have thrown in the towel and accepted the sad fact a foreclosure or bank repossession is imminent. Others, who are considering a Florida short sale, on the other hand, are hesitant because of the stress of getting your proposal approved.

Despite this, homeowners in Florida should realize there are unique state laws, rules or regulations which make a short sale the better option compared to a foreclosure. One of these is the deficiency judgment.

Unlike in the other states where lenders are not allowed to go after the difference or balance on the mortgage after a short sale or foreclosure sale, Florida law states a lender can choose to forgive or go after the deficiency. There are no guarantees that lenders will waive their rights since they do not have to. Short sales are negotiations and within negotiations anything can happen. Of course, pushing for a full release is the best case scenario but it should not be expected. Nobody can promise it to you.

Obviously, distressed homeowners prefer this scenario since it would help them get over such an unfortunate situation much faster without worrying if the lender will go after the remainder of the mortgage.

Another reason for you to choose a Florida short sale over a foreclosure is, of course, what your credit will look like after. Short sales typically can do less damage than a foreclosure.

There are experts who believe a foreclosure is better in the sense you do not have to provide a detailed report of your financial situation, which makes it hard for the lender to decide if they should go after you once the home has been repossessed. But if the lender is not privy to your finances, it is likely you will fly under their radar.

But if you think about it, a Florida short sale, one which has been well prepared, will certainly look more attractive to the bank rather than a foreclosure, in terms of costs. As long as you present a good case and you provide the lender enough proof of your financial hardship, then you will likely get out of this mess with fewer cuts and bruises. Find a professional Realtor who specializes in short sale transactions and your chances will be greatly improved.