Navigating the Return of Short Sales: Essential Knowledge for Brevard County REALTORS
The real estate landscape in Brevard County is shifting, and experienced agents are noticing something they haven’t seen in over a decade: short sales are making a comeback. While we’re nowhere near the crisis levels of 2008-2013, Space Coast REALTORS need to dust off their knowledge and prepare for clients facing underwater mortgages.
On October 27, 2025, Rick Bosley, General Manager of Keller Williams Brevard County and Operating Principal of The Bosley Team at Keller Williams, hosted a comprehensive short sale panel discussion featuring seasoned professionals who collectively closed over 300 short sales during the last market downturn.
Understanding Today’s Short Sale Landscape
Current market data reveals that short sales represent less than 2% of active inventory in our region. However, this percentage is expected to climb as homeowners who purchased during the 2020-2023 boom face mounting financial pressures. Panel expert Tom Toranto, who personally closed over 100 short sales between 2009-2013, emphasized a critical new factor: solar panel liens are becoming a significant complication for underwater properties.
Unlike the widespread market collapse that triggered the last wave of short sales, today’s situations are more individualized. Military relocations, job losses, extended illnesses, and divorce are creating hardships for homeowners who bought at peak prices and now find themselves unable to sell without bringing cash to closing.
The Short Sale Process: What Your Clients Must Know
A short sale occurs when a property’s current market value falls below the outstanding mortgage balance, requiring lender approval to accept less than the full payoff amount. According to Fannie Mae’s guidelines, sellers must demonstrate genuine financial hardship and inability to make payments.
Dan Smith from Countdown Title, who handled over 100 short sales as an attorney in Michigan and Kentucky, stressed the importance of involving legal counsel early in the process. Understanding Florida’s foreclosure laws helps agents guide clients through their options.
The documentation package required by lenders mirrors a loan application in reverse. Sellers must prove insolvency through bank statements, tax returns, pay stubs, and most critically, a hardship letter explaining why they can no longer afford their mortgage payments. Katie Lechner, who started her real estate career in 2008 when nearly every transaction was either a short sale or foreclosure, noted that sellers must typically be 90 days delinquent before lenders will even review a short sale request.
Timeline Expectations and Buyer Management
One of the most challenging aspects of short sales is managing expectations. Panel members reported timelines ranging from six months to two years, with the average around nine to twelve months. Lee Romano from Cocoa Beach recently closed a short sale that took a full year and went through four different purchase contracts.
The key challenge? Today’s buyers have options. Unlike 2009-2013 when 80% of inventory was distressed, modern buyers won’t wait months for bank approval when they can purchase a traditional listing immediately. This creates a strategic approach: secure a contract to initiate the bank’s review process, but prepare sellers for the likelihood that the original buyer won’t remain through closing.
For more insights on current Space Coast real estate trends, visit our market updates page.
The Role of Professional Support
Monica McKune, who completed 20-30 short sales during the last cycle with one taking nearly four years, emphasized the critical importance of assembling the right team. Most panelists agreed that involving a debtor-side bankruptcy attorney early protects clients from making costly mistakes, such as depleting retirement accounts that creditors cannot legally touch.
Title companies like Countdown Title serve as intermediaries, handling negotiations with loss mitigation departments and maintaining weekly contact with bank negotiators. This professional support helps navigate the complex approval process while agents focus on serving their clients through this challenging time.
Understanding the role of title companies in complex transactions can make all the difference in successfully closing short sales.
Closing Cost Considerations
An important aspect for sellers to understand: banks typically cover seller closing costs in short sale transactions. Sellers generally walk away with no out-of-pocket expense, though they should be advised that deficiency waivers are negotiable but not guaranteed.
Lechner shared a creative strategy from the last cycle: when Chase and Bank of America were backlogged with short sale requests, her team sent pizza to the entire floor where their file negotiator worked. Within two weeks of the pizza delivery, they received approval on a file that had been pending for seven months.
Alternatives to Explore First
Before committing to a short sale, agents should help clients explore all options. Loan modifications, forbearance programs, deed in lieu of foreclosure, and even Chapter 13 bankruptcy might serve clients better depending on their complete financial picture. Tom Toranto noted that when the price gap is relatively small, creative solutions like seller financing, subject-to arrangements, or rental strategies might allow clients to hold the property until equity returns.
The Mortgage Debt Forgiveness Act, currently extended through the end of 2025, provides tax protection for primary residence short sales. Additionally, FHA recently introduced a program offering $7,500 in relocation assistance and requiring only one-third of the standard documentation for qualifying short sales.
Learn more about alternative solutions for distressed sellers on our resources page.
Current Market Indicators
While Brevard County isn’t experiencing the flood of distressed properties seen during the Great Recession, there are approximately 60,000 properties in foreclosure status across Florida. For Space Coast REALTORS, this represents both a challenge and an opportunity to serve clients during one of the most stressful experiences they’ll face.
The key differentiator between successful agents and those who avoid short sales? Compassion, patience, and the willingness to assemble a strong professional team. These transactions require significantly more work than traditional listings, but they create clients for life who will never forget the agent who helped them through their darkest financial hour.
Taking Action as a REALTOR
If you’re preparing to navigate short sales in 2025, start by building your referral network now. Identify bankruptcy attorneys who specialize in debtor-side representation, connect with title companies experienced in loss mitigation, and familiarize yourself with Fannie Mae’s short sale guidelines available on their website.
Most importantly, ask the right questions during listing consultations. “How much do you owe on the property?” should be standard practice. This simple question can reveal whether you’re walking into a two-hour short sale consultation rather than a standard one-hour listing appointment.
The agents who thrived during 2008-2013 were those who embraced the challenge, educated themselves thoroughly, and approached distressed sellers with empathy rather than focusing solely on transaction volume. As this market segment grows, the same principles apply.
For ongoing REALTOR education and training, Keller Williams Brevard County offers regular professional development opportunities to keep you ahead of market shifts.
Resources for Continued Education:
External Resources:
- Fannie Mae Loss Mitigation Guidelines
- FHA Short Sale Program Information
- Florida Foreclosure Laws and Timelines
- IRS Mortgage Debt Forgiveness Act Information
Internal Resources:
- Keller Williams Brevard County Training Calendar
- Space Coast Market Updates
- Agent Resources and Support
- Connect with Rick Bosley on LinkedIn
For more real estate insights and continuing education opportunities, visit Keller Williams Brevard County or follow us on Facebook, Instagram, and YouTube.
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Call-to-Action: Are you prepared to serve Brevard County clients facing financial hardship? Connect with Rick Bosley and the team at Keller Williams Brevard County for ongoing education and support. Visit https://melbourne.kw.com/ or email RickBosley@kw.com