There are a couple of things that you'll want to consider before deciding to list your home.
1. If you could, do you ideally want to keep the home?
2. How much is your home worth?
3. What options are your bank offering you?
I would not be so quick to list your home yet. There are a number of factors that will help you determine when you list your home. You don't want to miss out on any opportunities because you listed your home and submitted an offer too soon. The first thing you want to do is meet with a Realtor, attorney, and tax professional who all specialize in Short Sales.
If you need a few great recommendations, you can contact me directly.