Is the poor credit as a result of medical bills, student loans, consumer debt, losing an owned home, or something worse?  

Are you saying that the medical bills would be higher than the equity?

Exercise is the best medicine.

., may not make sense for you.However, if you can find an tenant / buyer interested willing to purchase the condo a little below market $375K; sell them the option to purchase and then (separately) rent it to them until they exercise the option, you might be able to mitigate your loses a little better than a strait sale and bringing 40K to the table. 

A reason people may be interested in doing something like this is because that payment over a year, could minimize their down payment on the loan they select when they exercise the option.  

I like to bring my kids into mental exercises like this.

The reason it's such a huge issue in Africa is because of their medical facilities being so far behind ours as well as their own religious practices.

Today, I rent the unit furnished for $900/month to medical students.

Here are the numbers, let me know what you think. 100% bank financing140k property (both buildings)40k construction (rolling into one note)20 year term @6.252 bed 1 bath units3496 sq ftBuilt 1900Property is in C/C+ neighborhood 2 blocks from a university and medical school.

If I were you, I'd pay the medical bills.