It's unlikely you will incur any tax. You say that you are selling it for less than the mortgage balance so presumably you paid more that $60k and therefore you will recognize a loss on the property. Also if there is a forgiveness of indebtedness issue, that will go away if you are in bankruptcy.
If your home was held as tenants by the entirety, it became yours at the time of his death. Tax liens assessed against him became a lien against his estate. If all he had was jointly owned property, IRS liens are worthless. If on the other hand he had assets in his own name, which became part of his estate, the IRS may collect against his estate.
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Your refund on a tax return is not income per se. As long as your are current on your support order, the court will not interfere with your refund.
Your question is somewhat confusing. You say your name is on the mortgage and yet "they", the buyer have been promiissing to refinance. How can they refinance if the property is in your name?
Generally, the answer is no. Most mortgages have what is called "a due on sale clause". This means that the entire balance is due once the property is sold.
You will pay taxes if the selling price, net of selling expenses, is greater than the fair market value of the property at the time of your grandfather's death. The tax however is at capital gains rate which is 15%.