Sorry to hear that.
You should be able to replace it for under $1700.
Repair should run you less, but repair may not be an option depending on the damage.
I repaired my LU last year at SJ Hansen’s in Northfield. I was VERY happy with his service and price and immediate turn around right before sturgeon season.
It’s not going to be cheap, and it might be worth shopping for a different motor as it could be the same cost.
I put $3k into my old 40hp motor last year, first rebuilding the motor and then the lower unit…So the fix was worth it to me.