The main question is, Are you living there now?
is it your primary residence now? That's how it is looked at by lenders.
Harold Sharpe - Broker
So Cal Homes Realty
California Department of Real Estate License # 01312992
For the purpose of selling the home you could sell the home and because the home was a primary residence for 2 out of the last 5 years you would qualify for the $250,000 single or $500,000 double tax exemption. However, I would recommend that you speak with a licensed Real Estate Attorney regarding deficiency judgement. Good luck!