She has been transferred to a new living situation due to health reasons and can no longer pay both her mortgage and the monthly rent at the new place.

There are also First time buyer programs in many cities and being in the Health Care industry may have options available sometimes as well.  

If you have a clean bill of health aka a title policy that says the taxes were paid, you can file a claim with the title company. 

Due to the our health care system unpaId medical bIlls are not unusual.Perhaps the property could be marketed more aggressively to attract more renters?

From there, do an assessment of your financial health. 

I am currently a Peace Corps Volunteer serving in Paraguay, South America, working on Agricultural/Environmental/Health projects in my assigned rural community. 

Obviously you are not adding a bath or kitchen so it will more than likely be ok but I know here in my area the health department goes by the number of bedrooms. 

So, there is no point in giving away happiness and health for something so . .   

Where my long term concern arises is they are all 3 older and have various health problems they deal with..... so riddle me this. 

Justin, You can rollover your 401k into self-directed IRA, but not into HSA, which is Health Savings Account and not a retirement plan.There are several reputable providers here on BiggerPockets who are active on the forum, just search the forum for related keywords and you will find out who they are.