I have missed one mortgage payment

If they foreclose on my rental condo,
will I have to pay taxes on the sale?
I owe under $500,000. and my basis
is $380,000. I have a 1st & 2nd. Would
I be better off filing BK as I have lost
income and part time employment. The condo is in Calif. and I now live in Texas.
I can no longer keep it rented as no one is willing to pay the rent that has been the same for 4 years. Too many rentals going cheaper and I can no longer pay the difference every month. I have never made any money for years and I don't need any write off. My loan will reset in 2011 and had planned to sell last year, but due to the market was not feasible.