No. of Recommendations: 11
I am just circling back to this to express thanks to those who offered thoughts and ideas.

I spent a lot of time speaking with real estate investors, cash buyers, and mortgage brokers on her behalf and collecting all the necessary documentation and helping her with financial counseling sessions. Some positive ancillary developments: 1) trust-building with her, to the extent that we are now in the process of putting together a PoA; 2) confidence that even in its current state the house could sell for about what I thought (~70% of its appraised value) with an extended move-out time frame - that may be helpful later on; 3) a greater apparent willingness on her part to consider alternative housing arrangements.

Ultimately, we decided to go the reverse mortgage route as her health doesn't necessitate an immediate move-out and there is still a large amount of uncertainty about where or when she could move into senior housing. I admit to previously thinking that reverse mortgages are almost always a terrible idea, but this has shown me that they can be a very good solution for certain situations. She would be far better off financially if she had done it some time ago. While the up-front costs are high, they were all financed into the loan amount. Even so, she was able to reduce her blended mortgage rate from 5.3% to 3%, which represents a savings of 21% of her annual income, whereas she was not eligible for a traditional refinance due to her credit and income. Her predictable out of pocket housing costs have gone from 125% of her annual income to just 5% of her annual income (insurance only, as we qualified her for a property tax waiver), with the reverse mortgage accumulating an additional 33% of her income in interest (payable at house sale or death). I calculate that if she lives in the home for 3 years, she will have come out ahead, or if she sells the home for just 5% more than the offers we were contemplating (at 70% of appraised value), she will break even. She now has sufficient income to pay her on-going bills, chisel away at the small amount of medical debt she currently has (which we will try to negotiate), and even start saving for coming, inevitable expenses. It also gives her a small line of credit she could draw upon in an emergency, whereas she had maxed out her previous HELOC. Her relief is apparent.

The Caregiver Mortgage option turned out not to be possible, since the company that offers them does not operate in her state and did not respond to requests for referrals to similar companies (not that they have any obligation to do so). I did realize that the Caregiver Mortgage is essentially equivalent to an inter-family loan, which a lawyer could help set up, but provides some additional formalization and servicing. Such a loan was not a preferred solution in any case.

Thank you again the helpful replies and for giving me a place to work through the options. Hopefully the experience and knowledge gained from the process will allow me to offer the same to others.
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