Prayer?

If you file for bankruptcy the bank is "stayed" from collecting on the debt, ie. foreclosure, until the court determines the quality of the "asset". This could take quite some time. Meanwhile you live rent free.

When you file bankruptcy you give the court all your assets until they can determine their value and the offset to your liabilities. The bank would have to petition the bk court to exclude the asset, because it is burdensome (without equity). That takes time. Most banks are not proceeding with foreclosure to sale because once they take title to the property it appears as a debit on their balance sheet. A note, even non paying, appears as a non performing asset. When the bank's balance sheet hits a certain liability to asset ratio the Fed requires the bank to deposit more capital in order to stay in business. So they go to the Fed window of last resort. But no one wants to do that because there are alot of strings attached. This is why many banks are not continuing with foreclosure. Unless you have been served with a notice of sale stay put. Don't leave until they kick you out. The longer you can stay the longer you can live rent free. That's the best anyone can hope for today. Property values are dropping like a knife and most people are underwater. They will never recover what they paid for their property. Best case scenario live in the place 1 year rent free 12 x $1000 mtg payment = $12,000 Try to save $12,000 today. This could be your blessing in disguise.

Best to you and yours.