Yeah we're there now. Her husband died about 2 years ago and then she had to undergo major knee surgery and hip surgery (she also had more metal in her back from an accident than seems possible) but her husband's death and later her surgery happened just as our lease was up for renewal.
Since she needed us there to help her on occasion and their place is really an upstairs/downstairs duplex it only made sense to move in for a while, especially since she was so physically disabled.
I don't know about equity. I mean they/she had always paid on time and obviously there is outstanding loan. We're not on the mortgage tho (SO is an only child) and at the moment that gives us some negotiating ability. The house is not gonna move (it's in the boondocks) and straight up a ridge. I'm hoping they will be open to (a) some debt relief where we can put off payment for a few months and (b) a much lower lump sum payoff - they've made they're money a billion times over as it was damn near a predatory loan they got stuck in.
Otherwise, they will be stuck with an unsellable house and they know it. We are in the position to walk away if we want.
However, between the mortgage payments, two car payments, our student loans, an outrageous KUB bill, and other bills we could teeter over the edge in the short term which could screw us in the long term even tho a few months to figure out a way to get things taken care of would likely work things out (sigh). And then there's the funeral expenses which we just don't have saved - this came out of nowhere.
BTW, thx for the advice.