Before I decide to take title to the house, can I try to sell it 'as is'?

Yes. It would be better if the "Estate" sold the property. The family friend should sign a "Renunciation" as well as a "Quitclaim Deed" to assure clean title. An estate attorney should be retained to prepare the necessary paperwork.

You cannot sell the house, as-is or otherwise, unless you own it. The friend could sell the house and give the sale proceeds to you. But is the loan "under water" (loan amount exceeds market value) If so, the friend can't sell it without getting the lender to accept a sale price less than the loan amount in satisfaction of the loan ("short sale"). And anyway, there would be no point in selling because you wouldn't get any money from the sale. No mortgage payment has been made for five months.