Take whatever cash you an walk away with at closing, and recover these losses and generate more gains with your NEXT property. 

You will need to hold it for a long time to gain the appreciationOne thing to consider is right now rents on the area are down 5% and expected to be down next year before recovering.

(Check you state laws)You can also contact a collection agency who will know exactly what you can & can not do to recover funds.

You could list the property with a licensed realtor and try to short-sale the property with another entity.Live in it or rent it out until the first forecloses (without making any reinstatement or mortgage payments) to recover some of your loss.Generally speaking, even though real estate values are localized, most economists expect equity in the real estate market to be back to the level it was before the crash by 2017.

The reason you would want to collect the banking information is to make it easier for you or a collection agency to find the source of their money if things go bad on the backside and there is a judgement or other monies owed trying to be recovered. 

And it seems we can go a week without another company getting hacked and losing millions of dollars that can never be recovered.

You have to see how long you are going to keep this mortgage if you are not recovering closing cost in certain period of time, this won't be right step for you. 

Or you can wait in that house for it to recover the equity (well that's the Eyore thinking anyway).I liked @Nghi Les thought about taking the 121 primary residence exemption if you can. 

  ( Charleston Market specific)Now I have two big Oregon projects on the books my bankers think like @Chris Seveney we are and they are fine financing for the next 2 build years.. then who knows but we still have not recovered from the last recession we still have a shortage of about 20 thousand new builds that can be absorbed.. so no slow down and you see the market report indicates that and the 3 big Amazon sites that are bringing about 6k workers don't go into service until late fall.. and the 23 homes I am building is 2 miles from there I did not sell one to anyone from Amazon.. sold one on sunday so some one moving in from Vegas.. so still 100 people a day move into the Portland metro and about 50 a day into Charleston those are my two main new build markets.all of my turn key markets are also having record years the appetite for cash flow rentals has never been higher and with financing finally loosened up to where its not like pulling teeth to get a loan its just roared back with no end in site.. at least for my guys and gals.And of course our note business is just steaming ahead at record pace as well as investors at the mom and pop level have learned what turnkey note investing is all about.

You'd still be losing money now, that you'd have to recover before you started making a profit.