Peace & Blessings,
Khalif A. Majied
To still save your credit, you could still do a short sale on your condo vs. just letting it revert to the bank by doing a deed in lieu or a foreclosure. A deed in lieu is the same as a foreclosure on your credit.
The bank WILL agree to a short sale and with the known conditions, they will have to sell for fair market value taking into account the decrease in value due to the mold issues and due to the neighbors which have an affect on your own unit.
The object here is so you can take advantage of the real estate market and position yourself to purchase again in the nearer future vs. if you were to let it get foreclosed on.
The bank would have to deal with all of these same issues with mold etc., if they take it back as an REO.
let me know if you have any more questions.
email me directly, I don't check back on Trulia to the same thread