Did you own and live in the house as your primary residence for atleast 2 years before the disposition?
yes. more than 2 years. but i refinanced. that's my worry. thanks. tom
Since you lived in the house for more than 2 years, you can exclude the gain from the sale/foreclosure of the condo under Sec 121.
Hence, you will not owe any tax on the gain.
fSince this is a non recourse loan, there is no canceled debt and hence, cancellation relief provisions wont apply in your case in any case.