Guidlines have tightened up severly in the past 2 years. If a foreclosure happens then I believe you are at a 2 year minimum up to 4 years, before another purchase. Extenuating circumstances may let you buy at 2 years. I would ask your mortgage co if you could do a "Short Sale" I dont believe there would any tax consequence to you if it's not investment property. You could see if your state allows for any type of contract for deed, which isnt allowed for homeowner sales in Texas. Call a good Real-estate atty who might help you with a creative way to sell and the paper work.

Yes you can sale your home keep in mind you have expenses a Realtor can explain that to you.

Contact your lender determine if any options for you.

Sorry to hear about all this .

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Lynn911

Ecua,

We are sorry to hear about your situation ......it is certainly one that is common during these times.

Have you contacted your lender to explain your situation? If not, this is the first place to begin.....they will be able to advise you about the possible options available to you.
Good luck