Your case may take a long time and you have mediation till January. Can you make it till then, living on credit? Of course they are going to tell you to hang in there. But if you can't, then you need to tell them you can't and you need to work something out FAST. What are they anticipating in regards to a settlement with Ameriquest? I'm sure you know there are no guarantees. If it is class action then monies will be split with a lot of people. I'm sure they will benefit much more than the homeowners.
I am no lawyer, I just hang out with them
but I would ask your attorneys if it's possible to drop the suit in exchange for a loan modification.
Then you have to consider your credit cards. Will you be able to pay on those once they are maxed? It sounds like that will be tough based on what you have shared. Even with a loan modification. That $50,000 balance will take whatever reserves you have.
My advice is get that loan modified and work with a non profit debt consolidation company to see if they can help.