After thinking a bit more I think you should consider allowing your parents to buy you a place and then follow IrishCatholic rent to own plan, but now I am not sure they should buy your present house. No matter how much you love it it will have a certain amout of for lack of a better way of putting it ‘darkness’ hanging over it. Maybe a new place and a new start would be better for both you and your family.
I’m not positive, but I think that her home went into foreclosure in 2009, so it seems like this is really the end of the “tunnel” — as the foreclosure auction is next month.