Remove the threat to the family finances.

I would sell in a heart beat....Downtown San Jose is one weird spot in super hot Bay Area real estate market.... not many jobs, most people would NOT live there, rent or own....Vacancy is a very real threat there...

Luckily it stayed put at the last-minute, but it was a threat. 

Zillow estimates (all AVMs for that matter) are crap and a threat to the balance of the Force.

Don't make threats, just inform. 

My 2 favorite CPAs are on this threat already: @Linda Weygant and @Brandon Hall.

Second, I would ignore the threats of lawsuit.

I have since been working with a contracting company to provide cyber support to military operations.

I've had death threats, people coming to the door in the nude, late night arrests, sewer back-ups and all sorts of fun.  

@Bob Hucker I agree that a neighbors dogs should never be a threat.