You may want to look into offering them the “Deed in lieu”. They get the property back asap and they’ve accepted it in exchange for the debt owed. I dont know the details nor have I done it myself. But I’ve heard it mentioned before.
At the rate lenders are foreclosing on property, the process seems to be taking them a lot longer than the “normal” amount of time. So you could end up living at your residence rent/mortgage free for quite a while if you choose to go the foreclosure route. You get about a two weeks warning before being evicted by the authorities. So have a plan ready at that point.
But again, look into what it takes to get off the hook for the tax implications as well.