Kinda what I wanted to know. I guess the debate is whether the bank pursuing a deficiency judgment is likely going to really pursue. My wife says she's heard with amounts as small as ours ($30K deficiency), no way will they come after us. My worst nightmare is walking way, taking the credit hit, AND having the deficiency judgment bite us in the butt. If that's almost a certainty, I'd rather just fire sale the land right now, finance the deficiency with a 401K loan, and move on w/o killing the credit.
Correct me if I'm wrong, but I don't think bankrupsy is an option fo me. I have a decent house, good income, cars, not a lot of other debt. But, the $1500/month for this property puts me and my wife down in the catagory of not having much at all left over each month and we have 4 kids will college coming up, etc.
I know you don't have a crystal ball, but if I thought the chances of Colorado pursuing me for the deficiency was extremely small, I might consider risking it. I have a $4200 tax bill due shortly and if I'm walking away, I'm just going to ignore it and start not paying the note.