For most of the last decade, short sales nearly disappeared. Home values climbed so fast that almost everyone had equity, and if you had equity you did not need your lender’s approval to sell. In 2026 that picture is changing in Florida, and the shift is showing up clearly in the data.
Foreclosures are climbing, and Florida is leading
According to ATTOM’s midyear 2026 report, about 227,000 U.S. properties had a foreclosure filing in the first half of the year, up roughly 21% from the same period in 2025. Florida sat at the very top of the list, with about 27,494 properties recording filings, the highest foreclosure rate of any state, or about one in every 373 homes. Filings in the state were up around 33% from a year earlier. Jacksonville was named among the hardest-hit large metros in the country.
More homeowners are slipping underwater
The other half of the story is equity. Nationally, roughly 1.2 million homeowners were underwater in early 2026, meaning they owed more than their home was worth. That is only about 2% of all mortgages, but the share climbed more than 60% in a single year. Florida posted one of the steepest equity declines in the country, on the order of tens of thousands of dollars per homeowner in the hardest-hit areas. When prices soften and a homeowner also falls behind, selling the normal way stops being an option, because there is not enough value to pay off the loan.
Why this brings short sales back
A short sale is when you sell your home for less than you owe, with your lender’s written approval. It only makes sense when two things are true at once: you are underwater, and you have a genuine hardship that means you can no longer carry the payment. For years, the first condition rarely applied in Florida. Now, with foreclosures rising and more owners underwater, more people fit the profile again. A well-handled short sale is generally lighter on your credit than a foreclosure and lets you leave on a planned date instead of being removed after an auction. If you want the plain-English version, start with Short Sale, Defined and Short Sale vs. Foreclosure.
The catch, and why guidance matters
Short sales are not automatic. The bank is in control, and a sloppy file gets a no. The approval letter needs to actually waive the deficiency so the debt is finished, not just release the lien. Pricing, the hardship package, and a reliable buyer all have to line up. This is exactly the kind of thing that is far easier to do right when someone who closes these for a living walks you through it.
Want to learn how short sales really work? Come meet Keith.
Keith Jones, our short sale expert, is hosting an in-person Short Sale Mastermind in Jacksonville on Friday, August 14, from 11 AM to 2 PM. It is a working session for homeowners, investors, and agents who keep running into these situations. Come learn the playbook and ask your questions live.
See the event & get tickets →If you are underwater right now, do not wait
The mastermind is a great place to learn, but if you are already behind or facing a sale date, you should not wait until August to get help. We work with Northeast Florida homeowners every day, and we will tell you straight whether a short sale, a cash sale, or a completely different move is your best path. And here is the part people miss: a short sale only applies if you are actually underwater. If you still have equity, you can simply sell, pay off the loan, and keep the difference. The first step is an honest read on what your home is worth today versus what you owe. Request a no-obligation cash offer or call or text 904-606-9163 and we will point you in the right direction, either way.
Figures in this article are drawn from ATTOM’s midyear 2026 U.S. foreclosure report and 2026 negative-equity data as reported in mid-2026. Market data changes; verify current numbers before acting. This article is general information, not legal or tax advice. Consult a licensed Florida attorney, a CPA, or a free HUD-approved housing counselor at 800-569-4287 before deciding.