I am a home owner who got into an automobile accident and was unable to make payments on my mortgage for a long time. During this time, the home went to sheriff sale and now I am in the "grace period", so I can refinance, sell the home, or move out. My question is: Can I purchase another home and walk away from this one? If so, what kind of trouble can I look forward to?

You can look forward to being sued for the difference between the mortgage balance, and what the house sells for.

No one is going to extend another mortgage to you with this one still hanging in the balance.

Unless you have LOTS of money, and if that were the case, you probably wouldn't be in this position to begin with.

I'd try to refi if anyone will do so.