[KimMG]

Sounds like you need to get your car in for a brake job now before you cause a wreck. The grinding noise is most likely the remains of the shoes pressing against the drums (metal on metal). If you don't have good brake shoes, and they are not adjusted properly, the parking brake will not function.
The brake fading may be caused by the front brakes overheating since they aren't getting any help from the rear. Check your master cylinder for loss of fluid (a sign that there is a serious problem). A wheel cylinder may have failed also.
The longer you keep driving your car in this condition, the more damage you do. If you had gone to Midas for a free brake inspection when you first starting having problems, you might have been able to save the passenger side drum. Now it sounds like you may have to buy a new one.