The notice of default is submitted to the courts seeking the amount due (principle, interest, penalties, fees).

After market declines home is worth $80k so you have zero equity (with the exception of the principle payments made). 

Little more details below:Primary residence (in 2months) is market valued at 160k and my loan principle is at 65k.

I was a high level executive & worked my way to that position using 3 foundational principles - working effectively each hour on the job, developed social skills known today as emotional intelligence & very consistent follow up.I was a mediocre high school student, dropped out of college & became autodidact, learning specific things to advance my personal life & working life.

As long as you're acting as a principle you should be in good shape

My understanding about the principle portion of the mortgage payment is that the principle is not considered a deductible expense if the property remains in my name, but that it would be deductible if the property is in an LLC. 

The old saying about the stock market is time in the market not timing the market, it's the same principle for real estate.

Out of principle, would you try to take some out of their security deposit?

I'm more than willing to do the leg work to estimate based on any principles you might be able to provide, but if any other info will help let me know and I'll give you what I can.Thanks!!!

Currently 160K of principle is remaining on a 15 year mortgage.