My home is in foreclosure right (I am trying to get a died in liew of foreclosure), and I have not refinanced the house so it is considered a non recourse loan. Now do I have to file bk since my house is in foreclosure or can I just have the foreclosure? I am not behind in any other debt and I am not to deeply in debt that I would need to file for bk.

No you don't have to file for bankruptcy, unless you want to forestall the foreclosure.

Good that you are looking ahead. Have you had the house for sale? What is the debt and what is its value? My understanding is that after foreclosure you may be responsible for the unpaid balance if the sale is confirmed (or verified) by a court, which means that the proceeds obtained are fair with the most recent appraisal.

My house has been for sale for 9 months and had 2 offers (back in July of 07 and have had no more), we had a approved short sale but because the bank took so long to approve it both my offers walked away. I have NOT refinanced the original loan. The balance is $245 and the value at this time is $110K.

HUGHESK writes: "the balance is $245 and the value (of the home) at this time is $110K". You mentioned in your first post that you believe you have a 'non recourse' loan. I am not certain what you mean because as a borrower you probably signed a promissory note and you are responsible for its payment in full, right?