Our Mother has dementia and she requires 24 hour care which is running about $10-12,000 dollars a month. My Brother is Court appointed Guardian/Conservator and is required to submit his forms annually. We petitioned the court to apply for a Reverse Mortgage and it was granted. However the Underwriters are saying they need someone on the loan who will undeniably be there for 3 years and that because my brother has to apply every year - that is unacceptable. We are at our wit's end! We spent way too much on that and didn't help. Does anyone have any suggestions? My Mom is in Colorado!
I assume the family needs money to keep paying for the monthly cost from Mom's assets. With a Reverse Mortgage, it came become very complex. If down the road your Mom passes, then the Reverse Mortgage loan becomes due and payable. The family needs to decide if someone from the family can pay the loan, or get a brand new regular mortgage on the house to pay back on the Reverse Mortgage.
If not, the house would need to be sold to pay back the loan. And the bank will be in close contact to make sure the house is on the market For Sale, and will be checking on a regular basis to see if there is a contract. The house needs to be at market value, and if it isn't selling, then the price would need to be dropping in order to sell.
Skip the Reverse Mortgage, sell the house now at fair market value, you can use the equity to help make those monthly payments. Once the equity starts to run out, time to get Mom signed up for Medicaid [which is different from Medicare] as Medicaid will help pay for the room, board, and care of your Mother.
The family might want to get advise from an "Elder Law Attorney" as State rules can be different. Elder Law Attorney are also an excellent source of help if Medicaid is needed.