I simply have been paying the loan until now when I having been having health problems which have prevented me from working. 

We have accrued a sizable equity of over 60% of the value over what is owed , I am steadily and securely employed and make a very good wage that with this would give me the opportunity to restructure everything to be manageable and allow us the time and ability to rebuild our credit and reduce the stress that this pitfall has caused and is not any help to my wife's health.

In my experience, REITs are mostly a dividend play, so do your research on the dividend history and the future dividend health of a company.

I would like to get started in RE but I have to hold off for awhile due to health reasons. 

I can't comment on the analytic model used by BofA, but I do have a viewpoint on the health of the Houston market.  

If, when you do your due diligence on a property you determine that $X are needed immediately for health and safety work or obvious near term repairs, it is not uncommon to ask the seller for an abatement / reduction on the agreed upon price.

Talk to some community banks of the dilemma you're in.

Big correlation to health of their economies!

They are refusing to come back to the property due to Lead Paint (I think you remember my post), but the child is under state levels, the state health lead coordinator stated that they are safe to live there, the town health office said they are safe to live here and we have no legal obligation to pay for them to live elsewhere, as well as the child's pediatrician saying it is safe to live there as long as they continue to keep the house clean (which they want us to pay for cleaning services to keep the house clean and free of dust).

Hi Erin,I realize your dilemma and see that you've been learning our local market.I'm new myself, so take my words with a grain of salt.