What are my options for selling a home in negative equity?

We moved into our new home Dec 2005 in Jax, FL. A few months later, my husband recd a job offer from Microsoft, so we moved to WA. Due to high home prices in Redmond, WA, we decided to rent a place in WA. So far, since May, we have had to pay a mortgage payment and rent payment each month that total aver $ 4K. After settling from the move, we looked into selling out home in FL. The home builder has now dropped their prices for new construction in that neighborhood. When we moved, the home that we bought for $ 240K was selling for $ 280K. Currently, the new homes are $ 216K. We have been trying to find a renter knowing that we cannot get the entire mortgage payment ($ 1965), and have dropped our asking rental price down to $ 1000. Still nothing. It’s a brand new place, nothing’s wrong with it and is in a fabulous location.

What are my options? We can no longer afford to make this mortgage payment and are in serious financial trouble.

TIA!
A appreciate everyone’s quick responses.

To AEN – in case there was any confusion, there is negative equity. We currently owe $ 242,000 and the current retail is $ 216,000.

I don’t want to be foreclosed one and have my credit ruined. That’s why I’m researching other alternatives.

What exactly is a short sale?
If the lender okays it, do I just get a normal signature loan for the difference?
Should I get in contact with a mortgage broker, as well?

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