Subject-To vs. Short Sale vs. Foreclosure: Which Is Best for Florida Homeowners?

You're Behind on Payments — Which Path Do You Take?

When you can't keep up with your Florida mortgage, you have three main exit paths. Each has very different consequences for your credit, timeline, and financial future. Let's break them down honestly so you can make the best decision.

Option 1: Subject-To Mortgage Takeover

How it works: An investor (like Enko Home Buyers) takes over your existing mortgage payments. You transfer the deed, they assume the payment responsibility. Your mortgage stays in your name but is paid by the buyer until they refinance or sell.

Pros:

• Closes in 7-14 days
• Your credit stays intact — payments remain current
• Works even if you're underwater (owe more than the home is worth)
• No bank approval needed
• You can buy another home immediately
• Zero out-of-pocket costs

Cons:

• The mortgage technically stays in your name (though the buyer is paying it)
• You need to trust the buyer — work with an established company, not a random investor
• Due-on-sale clause exists (though lenders rarely enforce it when payments are current)

Best for: Homeowners who are underwater, facing foreclosure, or need to move fast without destroying their credit.

Option 2: Short Sale

How it works: You sell the home for less than you owe, and the bank agrees to forgive the difference. Requires your lender's approval.

Pros:

• Avoids foreclosure on your record
• Mortgage is fully settled — you're free and clear
• Less credit damage than foreclosure

Cons:

• Takes 3-6+ months (requires extensive bank paperwork and negotiation)
• Your credit still drops 100-150 points
• The bank can reject the sale or counter at a higher price
• You may owe taxes on the forgiven debt (consult a tax professional)
• The bank may pursue a deficiency judgment in Florida
• Can't buy another home for 2-4 years

Best for: Homeowners who have time (3-6 months), are okay with a credit hit, and want the loan fully resolved.

Option 3: Foreclosure

How it works: You stop paying and the bank takes the home through Florida's judicial foreclosure process.

Pros:

• You stop making payments immediately
• Florida's judicial process gives you 6-12+ months before you must leave
• Sometimes the bank forgives the deficiency

Cons:

• Credit drops 200-300 points and stays for 7 years
• Can't buy another home for 3-7 years
• Public record — everyone can see it
• The bank can pursue a deficiency judgment (you may still owe money after losing the house)
• Emotionally devastating

Best for: Honestly? Almost no one. This should be a last resort after all other options have been exhausted.

The Comparison at a Glance

Here's how they stack up:

• Speed: Subject-To (7-14 days) > Short Sale (3-6 months) > Foreclosure (6-12 months)
• Credit Impact: Subject-To (none) > Short Sale (moderate) > Foreclosure (severe)
• Cost to You: Subject-To ($0) = Short Sale ($0) > Foreclosure (potential deficiency)
• Buy Again: Subject-To (immediately) > Short Sale (2-4 years) > Foreclosure (3-7 years)

Our Recommendation

For most Florida homeowners who are behind on payments or underwater, a subject-to mortgage takeover is the best option. It's the fastest, cheapest, and does the least damage to your financial future. Contact Enko Home Buyers to discuss your specific situation — we'll walk you through all your options honestly, even if we're not the right fit.