Here are a few links for you to look at:
http://www.msnbc.msn.com/id/23997412/ (this was front page on MSNBC today about short sales)
http://www.dola.state.co.us/cdh/foreclosure.htm (definitely look at this website)
Lastly, have an agent visit with you about the what they believe the true value is on your home you might not be as bad off as you think (hope). And/or call your lender. You might be able to keep the home. A lot of lenders are willing to do what it takes to keep the house from going into default.
Best of luck,