Estate- what to do with deceased dad's house?

[Jenny Cross]

My dad and his wife recently passed away in February. And since then I was made the executor. They left behind a mobile home that their upside down on. They owe first mortgage $66000 and second mortgage $35500 and realtor says list between $82000-$95000 it could use painted and carpets replaced, but hate to put more into it if we're not making anything on it. Life insurance check was only $25k to be shared with brother and i have lights and utilities on as needed for showings. Realtor says if we rent it would go for $700-$750. I'm confused what I should do? Short sale? Rent wouldn't cover the $1000 a month mortgage. In waiting to see if second mortgage pits a claim to the insurance money. Can they if house pmts are current? Mobile home is on a corner lot and located in Oregon. Any suggestions? Thx in advance. I am loving this site and all the amazing members.