Should we take this person to court?

My parents stopped paying the Mortgage for our home about 5-6 years ago and ever since they've tried to do a modification to reduce the Mortgage.

They had started working with some lady to assist them in doing the modification. My parents have paid her $5000 in total so far. We have provided her with all the information that she has requested including our pay stubs, bank statements, etc. We recently received a letter from the bank that we are in danger of losing the house and could be up for sale in Jan. 5th if we don't respond.

We called the bank with someone else and the bank stated that they have not received anything from us (or the lady that we had working for us) in the last 6 months. Long story short, we went and confronted her to see if we can get our papers back and $2000 that was given to her in the last 6 months because we no longer trust her or want to continue working with her on this case.

Should we take her to court? Or any advise on how we should handle this in terms of getting our money back from this person.

Thanks in advance.

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