The only thing that I see missing in these post I'd the option for a loan modification or a short sale. Please look into both. B of A doesn't really want your parents home, and if you go through their processes and paperwork it can work in your behalf.
If you have any questions or need assurance with the shortsale I will be glad to help your family.
Ultima Real Estate
Thank for the additional info John. All the houses for sale or that sold from that era are much smaller and many of them don't have garages. These homes are selling from 1 to 7 months. in a lower bracket because of the size and amenities.
You really need to have a Realtor come look at your house and evaluate it to give you an accurate market analysis of price and timing. It may be worth more than you anticipate.... more