I also offer my sincerest condolences. It's got to be tough...
That said, I too would recommend holding off on any rash decisions. The one thing that you have to consider is, even though we'd seen a bit of a bump on home values, they will come back up and over the long run always appreciate for the most part. However, trailers, campers, toyhaulers all depreciate rather rapidly. A $70K trailer new will be worth 1/2 that in 5 years, where the 150K in equity now in the house, at the bottom of the recession, could double in value during that same 5 years. $35K at age 68 vs $300K? Seems to be a no brainer.
Imho, give careful consideration over keeping the house and getting a small trailer that will just suit your needs. If you can find something a couple of years old reasonable, you won't take the hit the first owner did. If you like it, you can always upgrade later.