You have various options and the right option is going to depend on many details regarding the foreclosure case and other aspects of your personal finance. You can eliminate a deficiency judgment or the possibility of deficiency judgment through a bankruptcy. However, whether bankruptcy is right for you depends on many factors best addressed in a one-on-one personal consultation with an attorney familiar with bankruptcy laws. You additionally have opportunity to negotiate a deficiency waiver in the foreclosure matter still pending. This requires a skilled attorney that can demonstrate to the bank and their attorney the weaknesses in their case, thereby gaining negotiation leverage.
I can never stress enough to clients who have a mortgage foreclosure -- keep the HOA assessments current. The association can take your property quickly for unpaid assessments and can foreclose even if the bank is already foreclosing. It works out better for the bank because they can take the property from the HOA much faster than they can the borrower.
This communication is not intended to create an attorney/client relationship. It is always recommended you consult an attorney in person to discuss your case. The Law Offices of Stage & Associates practices state-wide and represents homeowners and community associations. Please visit our website at www.stagelaw.com.