My got a property loan $ 240000, and the property price market is now $200000, it's in Arizona. Can I short sale it or foreclosure it is better? Also only my name on the mortgage, but my wife name is in the (deed) title as well. If the house is foreclosure will it be any affect to my wife?
Thank you

They will have to foreclose against you and your wife since her name is on the deed ** also does the mortgage company know her name is on the deed?

You can not do a short sale unless the bank will agree to it, so you can contact the lien holder and ask them how much of a short sale they would allow. Many times you have to get a real estate offer and submit it and they will decide first by how long it is on the market ( some will not short sale till the property has been for sale for at least 3 months and some will not unless you are 2 months behind in payments, each lender has their own short sale rules.

A foreclosure is never a good idea if you can do a sale of the property

If the house is foreclosure, what is effect to my credit and other effect? How long it will effect my credit.