I really feel for you, Lisa, and others in similar situations. In 1988, we too, had to sell at a loss. Thankfully, my husband's company covered the cost difference as part of his relo pkg. Maybe that is an option for you?
Keith's advice was right on: you need to get with an experince agent who knows both the rental and sales markets in Woodbridge and who can hook you up with a good tax accountant if you don't know one.
Many find that renting the home is a better option, but as more and more folks are realizing that, the rental market is starting to get softer- ugh! Anyway, not to be negative, but you just have to chose the best option out of some not-so-good ones. The real estate market WILL recover and those who can hang in will benefit in the long run. A short sale, and worse yet, a foreclosures may severely effect your buying power- for everything-- for years to come.
An interesting idea from a conversation with some collegues: in a couple or few years, if a good majority of the average homeowner and previous homeowner's credit is trashed due to late pays, short sale, foreclosures, etc, might we see a "forgiveness factor" in mortgage lending in order to stimulate home sales? An interesting thing to think about-- but I wouldn't count on it just yet.
Good luck and if you need an agent, I know a couple great ones in your area.