Best of luck to you and your family.
You posted this in zip code 85901 - does that mean that the house is in Show Low, Arizona? Has she approached her lender with the possiblity of a Short Sale or a Loan Modification on the property?
Without more information it is very difficult to answer this question. If you would like to discuss it in person, please feel free to call me if the home is indeed in Show Low. Perhaps we can figure out your next step.
If you helped her get the note ie your name is on the mortgage then you need to get involved and help negotiate with the bank. The bank does not want the home so get on the phone and ask for help, becuase your daughter got laid off there are programs to help. Also have her call social services they have free legal council for low income families because even if you are working with the bank they will continue the foreclosure proceedings.
Buy a home after foreclosure expert