Under your circumstances you have several option, and walking away is not your best option.
As a start you should call the bank and discuss with them your present situation. They might be able to work out a solution with you, to avoid having the property foreclosed.
If you can not work a solution with the bank, you can wait until it is foreclosed or you can do a short sale. The short sale is an agreement with the bank, where they agree to settle the debt for less money than what is owed. During a short sale your credit will also be affected since you will have the late payments, but this solution should be considerably less harmful than having the property foreclosed.
I live in Chandler and am very experienced with short sales (I currently have 10 short sale listing). Let me know if you will need any assistance selling yours.