A lot of really good advice has already been provided here. There are options. Short sale is one option. I recommend attempting to get a loan modification while the home is listed for sale. If the loan modification is denied, you have a little weight on your side that you did try to get a loan modification and now that option is exhuasted, you need to obtain a short-sale.
In most cases, if you use a professional short-sale bank negotiator, a letter will be obtained forgiving you of the remaining debt. In other cases, the bank will ask for a promissory note for a small portion of the deficiency at zero percent interest over 15 to 20 years. When a bank signs such a note, it superceeds the previous deficiency debt so the bank cannot come after you for more several years later.... more