I would contact either the AARP which have a lot of info on the subject, or contact a real estate attorney. Lots of red tape, and sometimes it's better to sell or rent and move them in with family or into assisted living.
I have a background in real estate and the reverse mortgage thing frightens me as well. I believe it has to do with the equity in the property as well as the existing liens and taxes. Basically (very), you take a loan against the property for the equity of the home, but it's in reverse and they either pay you a lump sum or monthly payments. At the end of the term, they own the house.
Very iffy, and lots of tax implications. It's not a proven thing yet, and with the property slump we've had, it's probably not a good idea to resolve her issues. That's just my opinion...
Good luck.
Receive the latest news and tips in your inbox