Overpaid on tax upset sale ? Just walk away ?

[Bob Bowser]

My mistake for not inspecting the property beforehand. Paid 12800.based on google maps

The property is a mess. Need to clean the junk out of house .. hoarder . Bathroom and kitchen need redone. Large tree in back is dead . Shed has collapsed roof. Holes in ceiling . Front steps need redone. Some cracks in foundation. Borderline needs condemned. 

It’s a disaster. It’s a small property’. Half a lot and two bedrooms. It probably needs 30-40k in work and it may only go for $40k. 
Is it best just to walk away ?  Putting that amount into it will only increase the loss.