Here's the skinny:
I have 2 properties, 1 was an investement which from the looks of it is going to go south. I am also in a situation that will cause me to possibly not be able to afford or pay for the property I am living in now, and with a baby on the way, it seems to be getting a lot more likely that I will need to get rid of these two properties. I have heard about short sale, foreclosure and bankruptsy. Due to the market, I only have about 1.5 months left before funds are depleaded and it hits the fan. What are my options? Please advise! Shoud I walk? Thanks in advance.

Get to a good real estate agent; he should be able to give you some immediate advice about the market you are in.

Start ( and you should have started a few months ago) trying to sell them, list them with a good agent. Most short sales require that they be on the market for at least three months, and sometimes will want you to be one or two months behind in payments, A short sale is the loan company taking less than owed as a pay in full, you don't get any money, but get out of the loan.

Next a foreclosure will take months after you stop paying, and gives you time still to sell the property..

Bankruptcy would be something I would not do until after they both foreclose, since nothing can happen until then anyway.