There are also completely separate tax issues, so you will want to speak to a qualified CPA.
Again, these are very specific legal and tax issues so your best bet is to speak to a qualified attorney and CPA regarding your situation.
but the last time I checked,
Michigan was a recourse state.
The one possibility that I can suggest, is to volunteer your "DEED IN LIEU" if the Bank will give you a letter absolving you of the debt for the difference: I have heard of it happening, and it couldn't hurt to try.
The only caviate I would be aware of, is to have an Attorney peruse the letter. Know what I mean?