If condemning a house wont absolve you of a mortgage, what options are there?

My friend's mother (foolishly) bought a house without having it inspected. They discovered later that there was no insulation in the ceiling and the insulation in the walls is questionable. They can't afford to heat the house because of the lack of insulation, they barely keep the heat on to prevent the remaining pipes from freezing. They also discovered the house was ridiculously old and half the plumbing exploded (as a result of the pipes being old and made of a material that is no longer used in newer homes). The rest of the plumbing still needs to be replaced- of the two bathrooms, one toilet doesn't work and the other shower doesn't work. The hot water has been turned off everywhere except for the bathtub that does work. Had his mother been in her right mind and had the house inspected before she bought it, it would have failed and not been sold. The house should be condemned, unfortunately she has three mortgages and a car payment. She is in debt up to her ears and the only thing that keeps her from drowning is her son living with her, giving her half his income (and then some). When her son decides to move out she will be in serious trouble. Is there some program or organization she can give the house to that will pay off the debt and either fix the house up and resell it or tear the house down and sell the property? If she can't get rid of the house, maybe some charitable program can at least repair it to be "up to code"/livable? Like habitat for humanity or one of those reality shows? "Pimp my house?" lol (I don't watch tv so I don't know if they have a show for fixing crappy homes) They both have decent paying jobs so they don't qualify as "Low-Income" but all the mortgage payments, the inefficient yet ridiculously high heating bill, on top of all the other various bills not to mention trying to keep food on the table make it impossible for them to afford any kind of repairs.