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Let me put your mind at ease about one thing. Your kids will not be forced to inherit it. At $46,000, this might be hard to swallow but your best financial move right now would be to default on your mortgage. You will likely face a bunch of collection calls and letters and maybe even a hit on your credit score or rating. But the collection calls can be ignored and you will probably save yourself the $46,000. And "Even if Mike wins [your] case", your mortgage won't magically disappear. If you want it to "disappear" do what I suggested and default but face the consequences. You do not need to pay FLG $6500 to tell you that.