"What if my house is worth less than I owe? Well, do have to sell it? Are you not willing to do what it takes to save your home? Maybe get a second job, sell material possessions, rent out a room?
If you have exhausted all your options, there are a lot out there, then push your bank for a short sale.
In the case of a short sale, the bank or lender agrees to take whatever your house sells for in the current market. They will do this even if your mortgage balance is greater than the houses value. Once you give all proceeds from the sale to the lender you mortgage will be considered settled. The difference between the what was owed and the selling price is forgiven.
Lenders do this when they feel the loss in the difference is not as great as the costs incurred from a foreclosure. It is not easy as it sounds to get a short sale approved by your lender, but it doesn't hurt to ask.
The damage to your credit score is no different than if you went through a foreclosure, but it will save you a lot of headaches in the long run.
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