Owe More Than Your Home Is Worth in Florida? Discover Your Options Today
Underwater Mortgage? Negative Equity? Don’t Panic – Expert Guidance for Central FL Homeowners
In 2025, with Florida’s housing market cooling, more homeowners are facing upside-down mortgages. If you owe more on your house than it’s worth, we’re here with compassionate, practical solutions.
Get Your FREE Underwater Mortgage Survival Guide
Instant Download: Options Checklist + Florida-Specific Tips
Or Call: 407-603-1664 | stacyann@realtorstephens.com
Disclaimer: This information is for educational purposes only and not legal or financial advice. Consult a qualified attorney, financial advisor, or mortgage professional for your specific situation. Realtor Stephens Team can provide referrals.
What It Means to Owe More Than Your Home Is Worth in Florida
An underwater mortgage (or negative equity home) occurs when your loan balance exceeds your property’s current market value. In Central Florida, where 2025 data shows underwater mortgages rising to 1.6% statewide (up from 1.3%), this is increasingly common due to softening prices in areas like Orlando and Kissimmee.
Causes include falling home values, small down payments, or high-interest loans from the 2020-2023 boom. If you’re asking, “what to do if you owe more on your house than it’s worth,” know there are viable upside down mortgage options.
Underwater Mortgage Options in Florida: Pros, Cons, and Timelines
| Option | Pros | Cons | Timeline |
|---|---|---|---|
| Short Sale | Avoid foreclosure; less credit damage; potential deficiency waiver | Needs lender approval; taxable forgiveness | 3-6 months |
| Deed in Lieu | Quick exit; stops foreclosure; often waives deficiency | Lose home; credit hit | 1-3 months |
| Loan Modification | Lower payments; keep home | Lengthy process; not guaranteed | 3-6 months |
| Bankruptcy (Ch. 13) | Stop foreclosure; lien stripping; catch up arrears | Long-term (3-5 years); credit impact | Immediate stay; 3-5 years plan |
| Rent It Out | Cover payments; wait for recovery | Landlord duties; market risks | Ongoing |
| Wait It Out | Market may rebound; build equity | Opportunity cost; ongoing payments | Years |
Florida Tip: With limited anti-deficiency laws, seek waivers to avoid judgments. In 2025, rising underwater rates in FL make proactive action key.
Detailed Underwater Mortgage Options for Florida Homeowners
1. Short Sale
Sell for less than owed with lender approval – ideal if needing to move. We handle negotiations for smooth closings.
2. Deed in Lieu of Foreclosure
Transfer property to lender – faster than short sale, with potential cash incentives.
3. Loan Modification or Refinance
Adjust terms to lower payments; explore Fannie Mae/Freddie Mac high LTV options if eligible.
4. Bankruptcy
Chapter 13 stops foreclosure and may strip junior liens; unlimited homestead protection helps.
5. Rent or Wait
Generate income or hold until values rise – FL market projected to stabilize by late 2026.
Avoid foreclosure as a last resort – it devastates credit for 7 years.
Ready to Explore Your Options?
407-603-1664 | stacyann@realtorstephens.com
Top Resources for Underwater Mortgage Options in Florida
Arm yourself with knowledge. For personalized Central FL help, reach out – we connect you with pros for 95% success rates.
Frequently Asked Questions: Owe More Than Home Worth in Florida
What does it mean to owe more than your home is worth?
It means you have negative equity or an underwater mortgage, where your loan balance exceeds your home’s market value.
What are my options if my house is upside down in Florida?
Options include short sale, deed in lieu, loan modification, refinancing, bankruptcy, renting out, or waiting for market recovery.
Can I sell my home if I owe more than it’s worth?
Yes, through a short sale where the lender approves selling for less than owed, or by paying the difference at closing.
How does bankruptcy help with an underwater mortgage in FL?
Chapter 13 can stop foreclosure, allow catching up on payments, and potentially strip junior liens if wholly underwater.
What protections does Florida offer for underwater mortgages?
Limited anti-deficiency protections cap judgments at fair market value for primary residences; waivers common in short sales/deeds in lieu.