Divorce,selling,refinancing, holy cow, I need help

I'm asking for my son..here's his story...he and his ex-wife purchased a home in 2001, her name primary. They divorced in 2006 and the divorce papers said the home was to be sold. Living in Michigan might be important. The home was listed over a year, with no luck. The ex keeps insisting my son refi to take her name off. The mtg is with Chase (don't get me started on how much I dislike Chase). He sent everything asked of him....twice, and still nothing, after 18 months. He tried to remortgage with Quicken Loans, giving them a nonrefundable $400 fee. After jumping through their hoops, bottom line, the appraisal last week was only for $118K, but he owes almost $150K on the mortgage, so...sorry, can't help ya. As everyone is aware, Michigan is a big one for declining home values. To add fuel to that fire, he had someone living in the home and paying rent to cover 1/2 the mortgage, but they are moving out. He works seasonally 6 months, and collects unemployment the other 6 months. Ex-wife is demanding more child support, bank demands mortgage, and he's at his wits' end. What would his options be? Chapter 13? Wouldn't the ex be held responsible if there is a bk? He is NOT behind on payments.....yet, but will be in the near future. He really doesn't want to leave the home, as the 4 yr old son loves the back yard, and the familiarity when he's there on weekends. If the banks won't help, I see no other solution, but to ride out a foreclosure....the Ex told him to let it go back to the bank, I wonder if she thought about her own credit hit? Any suggestions would be greatly appreciated.