Question about foreclosure and deed-in-lieu

In Oct 2007, I discovered my house had extremely toxic mold which I could not afford to fix. I was very ill from the mold and had to leave the house immediately and rent an apartment.

I could not afford the mortgage and rent at the same time so I am forced to either foreclose or do the deed-in-lieu the bank is offering to do. I am told that the deed-in-lieu is not as bad on your credit report as foreclosure. I also have a $5000 line of credit that the bank wants me to continue to pay. I said I would as long as they can keep the payment & interest the same. I cannot afford the payment to skyrocket. The process has now dragged on from Oct to now. I can no longer afford to keep up on the utilities on both places. I feel my credit is ruined now anyways because I am now 3 months late on the mortgage payments. I had no idea the bank was going to drag this out this long and am now wondering if foreclosure would be much of a difference on my credit.

So my questions are...

1) Would foreclosure be a better option to get out from under this house, utilities and HELOC?

2) Is there much of a difference on your credit report between a foreclosure and a deed-in-lieu?

3) I work for the bank that my loans are through. Can I be fired for going into foreclosure? I don't think it has anything to do with my employment but wanted to be sure.