Can I go and talk to a Probate about this and maybe get a Short sale lined up and my older sister will pay it off or my dad can pay by himself?

My father had my niece take and buy the land and his home from the Bank that had caused him to go into an agreement with the land and house on the loan. Dad only had like $14000.00, in a couple of small loans, instead of letting it foreclose on that amount my niece bought it for $20,000.00 and got an extra $8000.00. This was last April but we didn't see her for a few months and began to ask questions. At the beginning of the New Year, we got a phone call telling us she was found dead and my father has a letter stating that he can live there until his death but now this has happened, he can take up payments but instead getting this done, the Banker told my sister that we do not need to worry about it right now. Then instead of talking to my sister (my niece's mother) or to my dad, we had a letter sent to us stating that it will be put up for auction on April 12th, which doesn't give us much time at all.