Before you consider the foreclosure, consider these re-financing options and the "short sale" alternative:
Financial distress? Homeowner finance options through HOPE NOW, an alliance between counselors, mortgage companies, investors, and other mortgage market participants. See the link for more information.
Short Sale Consideration Webinar. (35 minutes). A must watch before starting the short sale of your home. More information on the short sale process. What is a short sale? What should I do? How much will it cost? Watch an excellent short sale webinar that will answer most of your questions at this link: http://www.arizonahomesland.com/forsellersorlandlords.html
I am a litle biased, but a good local realtor can help you find the house you need, or an apt you like. You will also need some support documentation to give any new landlord since most landlord run credit reports on their tenants. Bankrupcy is a big step, and hopefully you consulted with an attorney as well as an accountant. Both can give you the pros and cons, to help you make the best decision for your future. Doing it "on your own" will just add time and with the circumstances your mentioned, stress to your life. Now is the time to get together the team to better chart you future. Work with a local realtor, a good attorney and a good accountant so that your financial future can be better secured.