This is known as a short sale and may be an option as long as you do not have multiple mortgages on your home. If you have taken out multiple mortgages, you may need to get the consent of the subsequent mortgage owners, which would be unlikely because they would get nothing from the sale. If you get consent from the lender for a short sale, or your state allows a short sale by law, you can sell your home for a price less than the amount owed on the mortgage, and the lender cannot pursue you for the deficiency. A short sale can leave you with less debt and a stronger credit rating than a foreclosure.