How to sell a house with non-inspected improvements for most $?

[Account Closed]

Property roughly worth $130K had improvements made to it that were not inspected and therefore after a home inspection (for the purposes of selling the home) it was discovered that there are 100's of violations that would be cost prohibitive to fix, in order to get rid of the house/liabilty. The owner of home still owes the bank $20K. What is the best option for the homeowner; firesale, foreclosure, what? Please advise.