You should not "let one foreclose".
Find a very experienced short sale Listing Broker / REALTOR (like myself). If you short sale one or both, you will have some control over the losses and may even be able to work an arrangement with the bank such as a Short Sale or Deed in Lieu. DO NOT PAY ANYONE IN ADVANCE TO DO A SHORT SALE OR A LOAN MOD. Also, if you use an experienced Short Sale Listing Broker / REALTOR, there will be no additional charges for the negotiations as it comes from the commission. DO NOT USE 3rd party negotiators that are paid in a fee in addition to commission.
Best of luck,
Broker & REALTOR
Orange County, CA
Read the Testimontials on my website