Situation-Child wanted to buy a home, couldn't qualify, Parents put loan in their names--child is living in the home with their family 100% of the time making all payments; parents have other primary residence. Current Events-one parent has died, value of the home is now 1/2 what is owed on the home loan. What to do? Child would like to be on the loan since they are making every payment and in the event something happens to the other parent; and parent wants the child to have the home no matter what--can this be done? If so how? Assuming the bank won't refinance, equity isn't there? Are there any other options right now?

There really aren't too many options here. The parents must remain on the current loan, as that's a requirement from the bank. The bank may allow the child's name to be added, and keep the parents as co-borrowers - call the bank and ask about that. Refinancing with a brand new mortgage is not possible without someone making a big principal payment - which I would not recommend.