So, price aggressively in this situation.
As for deed in lieu, that's not as easy as it sounds. For a variety of reasons, most lenders don't like doing a deed in lieu--they'd rather foreclose. You send them the need, and they may very well foreclose anyhow. And without the deed, you won't be able to do a short sale (you won't own the house any longer), a subject-to (can't do a subject-to without the deed), or much else.
With your house in the (poor) condition it's in--no flooring, no kitchen--a short sale is an option. That's when you sell the property to someone else for less than is owed on the mortgage. Your lender has to approve the short sale, which they sometimes will and sometimes won't do.
You might also consider a subject-to, ideally with an equity share arrangement, with an investor. In a subject-to, you give someone else the deed. They own the house. However, the mortgage remains in your name, and you're responsible if the purchaser defaults. You're placing a lot of trust in the investor; if the investor defaults, the lender will forclose on you. However, if the option is the lender foreclosing anyhow, you'd be no worse off. And if the buyer performs as promised (bringing the mortgage current, paying the mortgage as it's due, then ultimately selling the house and taking his profit), then your credit is in much better shape than if you'd gone to foreclosure.
Note: I'm not a lawyer, so this isn't legal advice. Check with a lawyer.
One other potential advantage to a subject-to: In a short sale, you're not allowed to walk away with any money. That's always a lender-imposed condition. On the other hand, in a subject-to, the buyer can give you money for the deed. Maybe just moving expenses. Maybe more. And if you do an equity share arrangement, in which the buyer agrees to give you a portion of any profits when he sells the property, you might actually make a few dollars on the deal.
One additional caution, though: Subject-tos violate the "due on sales" clause. So, technically, a lender can call the mortgage due and payable if it finds out that the deed (the lender's security) has been transferred. Sometimes they find out, and sometimes, when they find out, they do invoke the due on sales clause. Frankly, though, in today's market, with all the foreclosures, not too many lenders are eager to call a mortgage if someone (your buyer) has brought the loan current and is paying on time. So the risk may not be great, but it is there.
Hope that helps.