Your mortgage insurance is obviously a lot higher, but the interest rate is also extremely low if I'm remembering right.To qualify you have to move to an area declared to be "rural" by the USDA.

@Jesus Moreno the cash flow must be declared as income.

Why in the world would someone declare bk if their debts are so small they can manage it and pay them off in a year?

Typically, the documents included are: Annual Financials, Articles of Incorporation, Budget, Bylaws, CC&Rs, Insurance Declaration Page, Regular Meeting Minutes, Resale Certificate/Demand, Reserve Report, Rules and Regulations.

I wouldn't dream of declaring a paid up, properly notified intent to vacate 2 days before.Impatience and RE don't mix in RE on many levels. 

Would I be declaring all expenses during the escrow time and then paying the taxes at that time or during the year end tax time?

You would be notified here in CO.Shortly before the auction the lender will declare the amount they're owed or the opening bid. 

Verbatim from Mortgage Agreement...The mortgagee may declare the full amount of the debt to be owed and payable immediately for any defaultthe following defaults are:-The agreement states that if mortgagor fails and defaults to make Payment required by Bond or Note or mortgage within 15 days of due dateFailure to keep Any of the promises and agreements (which their was non of the above, he doesn’t even answer our calls) within a reasonable time stated.So now, with this type of situation.

Last time I checked there wasn't any declaration one had to make that the intent was to die in the house or pass it on to heirs. 

Before this happened the wife declared bankruptcy.