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Mom, don't sacrifice your retirement savings to keep our lifestyle the same. It's not more important than struggling so hard in your retirement years. Your kids will get used to living with less, we'll get over any sadness we feel over it, as long as we're together.
Also, you have a bad case of sunk cost fallacy. You're going to lose the house over it.
Dad, if you run away from your kids when it gets tough, they are going to be traumatized, and it will come back to bite you when you're older. Your son especially will want nothing to do with you. Your last years will be lonely enough, don't abandon the only people who will be there for you.