So we decided to take the $1000 loss of the non-refundable deposit and we are cancelling our catering. We are going to have a "pot-luck" type of event. My mom, FMIL, and best man (as well as a few family and friends here and there) will be making the food. Should be lots of fun/stress, but it will be about $2000 cheaper (even after the $1000 loss) and it is not a problem if everyone we invited comes.