It must do the exchange. 

As an investor, you must know your max price in order to make money on the deal.

If your current property is only cash flowing moderately well, then I'd say 1031 that $419k of value (you must maintain the same value in new props AND at least the same amount of equity) into a couple cash flow properties in more stable markets with lower entry prices.

ALL I heard from EVERYWHERE else is that I must be wrong and it couldn't possibly be a Judicial Foreclosure. 

Instead I settled for where I was at in life and became complacent because naturally I hate change or risks .now I have a new vision and realize no one is going to do this for me , I must create the life I want by willful actions not dreams .

If so, then your self-directed IRA cannot be used in any way to participate in the purchase transaction as that would constitute self-dealing.If the IRA is purchasing the home purely as an IRA investment, then the loan must be non-recourse, meaning no personal guarantee from you. 

Thank you Chris, and I must admit that I was not aware that medical bills were treated differently . sadly, I lost everything , house, truck, and had to file BR in chapter seven which is discharged but being self employed puts me at thevbottom of the food chain for now.

Go visit houses on your area / network,5.

I am searching for a new loan, I must refinance my primary home to get out of a horrible interest rate. 

I know my organization skills are not the best but I must move on being as organized as possible.