If the house was left to you, I assume it is transferring to your name. If you allow it to forclose, it will hurt your credit and you will not be able to purchase another home.
You certainly can try to have the loan mitigated, but keep your expectations low as to what loan mitigation means and how the lender defines mitigation.
Do not pay anyone to mitigate it for you; that is not necessary. You will have to provide a hardship letter to the lender, along with your financial information. Explain the situation and see what they can offer to you.
Please discuss everything with an attorney.