After we got the reassurance that the termites are gone we set about repairing the foundation. We got some quotes to have it done professionally but the price was outrageous. After some research we decided to replace it ourselves (ourselves=Steve).
Here are some pictures of the process:
Old and new joists together (in process)
So for a little explanation, the black cylinders in the last 4 pictures are called bottle jacks. Steve and his Dad first built a frame and then used the jacks to lift up the wall so they could replace the foundation. To be honest, it was terrifying (Savannah and I hid in the front yard) but they did a great job and got it all done!