The Arizona Department of Real Estate has an excellent publication entitled "Arizona Short Sale Advisory" that will answer many of your questions including where to get real estate legal assistance.
The Advisory addresses deed in lieu of foreclosure, foreclosure, short sales, loan modfications and more. To see a copy see the Arizona Short Sale Advisory link at: http://www.arizonahomesland.com/forsellersorlandlords.html
May I wish you the best.
Arizona Homes and Land
Bill Kozub Phone: 480-624-2777. He charges a $300 consultation fee.
As agents doing short sales we are are cognizant of the Arizona anti deficiency laws. If you have had human tenants living in the property for 2 of the last 5 years you will most likely qualify for "debt forgiveness" on the balance if the loan was used strictly for the purchase of the property and property improvements. This is true for a foreclosure under AZ State law, but not necessarily for a short sale. In the case of a short sale or deed-in-lieu-of-foreclosure you must get the lender to give you a "full release and satisfaction of debt" agreement (reviewed by your lawyer-banks can be sneeky), otherwise you will still owe the lender the unpaid debt short fall.
Short sales have the advantage of impacting your credit report for 2 years while foreclosure is generally 4 years.
For more on short sales try these links:
FINANCIAL CONSEQUENCES OF A SHORT SALE
SHORT SALE STEPS AND PROCEDURES
There is also a chance (albeit slight) that the lender(s) might take the properties back on a 'died-in-lieu'. The lenders loss mitigation dept. can discuss that with you; each lender has their own set of guidelines regarding 'died-in-lieu' programs.
The other alternative is to find a good short sale agent in/around Bullhead area and short sale the properties.
Send me an email if you like and I'll send you a list of local real estate attorneys who can do a consult with you regarding your specific situation. I highly recommend it considering you're going to have some tax liability as well whether you short sale the homes or let them go into foreclosure.
Century 21 All Star, REALTORS