Some great advice from helpful agents from here in Hampton Roads to Maryland...
This decision has as much to do with your future cash flow, capacity to save, and tolerance for risk as an out-of-state landlord, as it does with your present savings and cash flow. Often in financial decision making, our aversion for loss in the near term puts us in a mind set to take much more losses in total over a longer, more stressful haul than good financial logic might dictate.
I recommend you link up with a local Realtor who has experience helping homeowners in your situation make a sound decision that is best for your family. A family loan or short sale may not be a bad option. Depending on your longer-term income and investment outlooks, renting may also be a feasible choice.
I look forward to serving you in this important endeavor. Feel free to contact me any time with questions or service requests. The link below will pull up my profile so you can review my professional services and access my contact information. All the best, Joe McAvoy.