1. communicate with your Lender's Loss/Mitigation Department.
2. ask them to do a Loan Modification, (you will this on-record)
3. submit a "hardship" letter, detailing why you are "distressed"
4. LIST you house with a Realtor as a Shortsale.
5. have your Realtor do a CMA
6. Price it a little under Market
7. Follow your Realtor's advice