My husband and I are in a similar position, although children are not involved. We will be moving to Florida (from Ohio) so that he can pursue a career change. After discussions with realtors, we were advised that a short sale would be the best course of action. Most of the time, at least the particular realtor we decided to go with said, you can get a letter of indemnity from your mortgage bank stating that you are "forgiven" the deficit created by the short sale. This means that, although you won't be leaving the table with any money in your pocket, and you will have to pay a portion of the attorney fees ... in our case, just $250 ... your credit won't take a hit.