Cash is king. I am a loan officer, and a cash man. What does that tell you?!
I just figured it was worth mentioning since I thought I read he would co-sign for you-suggesting a loan. Not all out buy a house for you!
Talk to a realtor and determine your actual value. If you are more than 20% under equity, a strategic default may be in your best interest especially if you are in a declining market area.
For example, I have a co-wroker that defaulted over 3 years ago. He is still in t:no:he home, he has not been asked to leave, and since he is 3 years since his last reported forclosure, he is eligible to purchase another home (even though he is STILL in the house "rent free")
Crazy, but these are our times.