Greg,
Bingo! That's what a reverse mortgage is. The bank pays your mom each month so she can live, and in return, they get the whole estate when she passes. We have a saying in real estate: RAM (Reverse Mortgage) mortgage rams it up your butt! To be sure, have your attorney review the documents that your mom signed. Like I said, if she can quit-claim the property to you, and you can refinance it, you pay off the RAM, then also take some cash out for her to live on. This is in your bank under your control. Put her on your medical if you can, and then she's taken care of, you're taken care of, and the property stays in the family. I know she would be happier if you get the house, and if you have that much equity, you have a really big margin to play with. An equity line can be a portion of the available equity, or all of it to draw from when you need it, and not necessarily all at once. You can also pay it down without paying it off and still leave it open. Very much like a charge card. You might be able to have your cake and eat it too! (Order that dream custom Alembic too?)
Seriously, check it out!
Kris
