I feel for your situation, and know there are many circumstances that get you to this point feeling the need to sell. Take a breath, relax and look at it from a numeric stand.
$400 month= $100 week, = 5 days at $20 more income per day. (or $100 a weekend of side work)
Can you ask for a raise, or find side work, or create extra income? This is alot of money but at the same time its not out of reach. I am in a similar position where it seems you have to pay out more than you bring in, and I survive on side work (car detailing, audio install, electrical work etc etc) until the real estate market recovers, and I can once again make money w/ my near useless license.
I think you are experiencing life, everyone has this at some point, and you will learn a lot about your ability WHEN...not if...WHEN you over come this. Try keeping the house since its payment a month is similar to an apartment, and would create more debt by selling. All things are temporary, in a year or so, (after the election anyway) the media's outlook will change, and we should see the economy improve, and give us all more opportunities.
In your situation we cut cable to a smaller package, reduced home phone to the minimum $25 a month deal, ate a lot of left over and hamburger helper, and looked for ways to make $50 here and there. By doing this we made/ saved $15,000 in one year....and we are by no means highly skilled, above avg intelligence or any of that. We were smply determined to succeed...did I mention we had a new born at the same time?!
Hold your head high, grab the horns, dig your spurs in and give it he((!
The alternative, is be glad you are not married....you have more options this way. Be careful not to give her more than she is willing to give. You selling your things as a single guy sounds like blind love, or possibly infatuation.
Slow down, think, act slow, and make sure she is not trying to sell your stuff to help her. that starts when you get married