West Palm Beach Disaster

[tarnis]

Don't even know where or how to start, but I could really use some advice. I purchased a home in West Palm Beach in 2004, and the mortgage broker talked me into an 80/20 loan since I didn't plan on staying there more then 5 years or so anyways...was and still am about ready to head back up North where my family was. Anyways I lost my job a few years later, and after 4 months or looking I exhasted my bank account and moved up to Central Florida for a 15K pay cut but at least to be working for ok money. A friend offered to rent-to own and all seemed good. It wasn't good though. Prices kept falling lower and lower and by the time came around a year later for him to buy I was introduced to the short sale concept as it dropped 20K bellow value just as he called shortly after to let me know he was buying my next door neightbors unit with the slightly larger living room instead(burn).

So here I have another 5 months later...finally got it re-rented as no one was even interested in the short sale to something that I shouldn't have and my better judgement told me not to let rent the house due to a lack of options. Days after moving in they served her my forclosure notice and I haven't seen rent since...she wants her deposit and money back to move out which was all sent to the bank. Have two people now interested in a short sale but having issues getting them in to see it due to the tenant and by the time I'm done dealing with her(btw I live 4 hours away from this house) it'll all be over for it anyways.

I'm being told to walk away and file for chapter 11...my credit card issues from not working I can kinda handle but they're maxing me out at the end of the month as it is and if it wasn't for the house I wouldn't even consider it. I just know one more disaster and I'll be filing for bankruptcy anyways so should I just pull the plug or is there a safer way to get out of the house and join a credit counciling program on top of it.