[Brizzy]

...best option? She feels guilty. I feel helpless. What to do?

[Buju]

That a hard question, if it the only option left, then your wife will understand in time. Just let her know that it is not her fault you are not the only ones in this crisis. Explain to her that credit can be rebuilt and a foreclosure is just one minor hurdle in your marriage and when you jump over it you all will just keep on running .Good Luck...