Joshua provided you with a fabulous and complete answer.
Homes are still selling when properly priced. If you have only owned your home for 1 year and your home is priced the same or higher than what you paid for it a year ago then your home is overpriced. Prices are correcting and prices are sliding. For those who purchased in 2004 and 2005 this may mean that are seeing less or no appreciation...for those who purchased a year ago this may mean they are actually going to experience a depreciation.
Communication is this situation is key. Perry is correct that you are not alone in this situation. There are Realtors that can help you by telling you where you home needs to be priced to sell before foreclosure and by communicating with the mortgage company for a short sale. There is also a Deed in Lieu of Foreclosure option; however, a short sale would be the best for your credit and the governement has lifted the taxes on the debt forgiveness of a short sale.
You have options Payton, the key here is that you need to act fast because the clock is ticking and time is running out. There are fabulous Realtors here on Trulia to call and meet with. Click on our profiles and email one us of so we can help you succeed.