Parents in a pickle. What are their options?

[Tashina Taylor]

Good morning,

My parents are currently renting out their 70's era manufactured home. The tenant accidentally flooded nearly the entire house. When my parents went to go make an insurance claim, the inspector found evidence of previous water damage and mold and decided they would not cover the damages. They are now saying they will not continue their coverage until the water damage and mold is taken care of. 

The house is a very rural area of very northern California. House prices are not very high, with the median for the area being around $100k. They still owe $67k, and the house is only a few more accidents away from falling in on itself, especially after it being flooded. The tenant is terminal and may not be renting the house for much longer. 

I doubt investors would be interested in this area, and the house isn't able to be put on the market without significant repairs. They do not have enough equity in their current home to put towards the other as they moved under a year ago.  Finding a contractor to even come out to the area is a challenge in and of itself. 

Given this situation, what the HECK do they do?! Thanks for any information and suggestions you may have. 

[Jay Hinrichs]

let it go back to the bank..   short sale it   walk away..   although even rural CA usually has buyers at the right price.

is this north of Shasta ?  by the coast or more inland off of I 5  or eastern area off of 395 north of Susanville ?