Underwater soulution

[David Carreno]

Hey everybody, here is a case for the creative forces of this community. Please feel free, like free-free and I mean really free to pitch in. :D
Ok so here is the deal, house is severely under water, according to several sources of preliminary appraisal, haven't run an actual one yet.
Appraised when bought 130,000
purchased 110,000 no money down.
Fannie Mae loan.
Current market value 75,000
7.35% total payment 1,036 (includes everything)
So refi is out of the question, my best bet option that I am working on so far is a loan modification, however a deed in lieu of foreclosure is also an option, as well as forbearance.
Best case scenario is to lower the payments so that I lease option it to the current tenant.
What I do not know is if there are tools or resources that I can use as leverage when dealing with the bank. Also I do not know how each option affects my credit score which I want to protect as much as possible.

Any thoughts anybody?
thanks

:D