Regarding your credit the damage can be greatly limited…
By working with a private investor it is possible to sell your home via a short sale with no negative impact on your credit. Private investors usually are not set up or allowed to report at all.
They may be able to purchase your loan from the bank. If so they can allow you to sell your home by forgiving enough of the loan balance to allow the sale to close at no cost to you.
Private investors typically do not report to the credit agencies. You can get this confirmed ahead of time by asking them. I purchase these loans and do not report. Thus, while the investor owns your loan no more adverse credit reporting will occur.
That means no more late payments reported until the close, and no short sale on your credit after the close. Frankly, this little-known approach could be a God-send for many.
You can see if your home qualifies to be purchased by a private investor here: