I am looking into the options of a Deed-in-Lieu, should I be?

Hello, I purchased a home in April of 2004, this home has been nothing but a money pit since i purchased, bad plimbing etc. However I fixed all those problems. My problem now is tyring to pay the mortgage. so I'm looking to do a Deed of Leiu. and not sure how this works, can some tell me how this process work.

I am also considering a deed-in-lieu. After a brief stint in a southern state as a yankee (yes, they think that's STILL actually a word) and having my children tormented and people being blatantly rude, I jumped at the first job offer I got back home...that was over four years ago and I still have the house down south. After two failed Lease Purchase deals, I listed with an agent almost 10 months ago and have reduced the priced twice, way below market value to no avail... the additional expense... My credit cards are now maxed out from the additional expense and I have no choice.

I contacted the LOSS MITIGATION DEPARTMENT (I was advised by several sources including HUD that the regular customer service dept won't help) and told them my situation - there just isn't anymore money and no more credit! Either take my house and be done with it, or I let it go into foreclosure. Either way, I can't make any payments so I would think they would rather just save the legal expense of foreclosure and do it. They sent me some paperwork. I haven't been able to bring myself to do it yet... Any advice?