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File a Ch. 7 if you are walking away or moving, I would try to sell it as a short sale with a Deficiency Judgment first though. I am not a lawyer.

Don't walk away! Fight it, Contest it. There is no reason to walk away, you could File an Objection or Answer, file a Notice of Discovery and request the proof that the Plaintiff has the original Note with the proper endorsements, and only then can they have Standing to bring the suit forward...

The Question is: Who is the Holder in Due Course? The Plaintiff is the Servicer and not the Holder of the Note in Due Course. According to UCC laws Title 3, the Note must be negotiated in a specific manner(Endorsement) that enables the Holder to demand payment and enforce foreclosure if payment...