Conservatorships & Reverse Mortgage Loans
When an unexpected Alzheimer’s diagnosis forces difficult conversations about the future, families must quickly find the right resources — and in some cases, tools like a conservatorship and reverse mortgage can help provide stability and care.
The Story: A Shock to the System
Cathy never expected her Aunt Trish to need significant help. Trish had always been fiercely independent. But when bills started going unpaid and appointments were forgotten, it became clear that something was wrong. An early-onset Alzheimer’s diagnosis confirmed their fears.
Trish wanted to stay in her home, surrounded by friends and familiar neighbors. Cathy was committed to helping, but she worked full-time and knew she couldn't provide the level of care Trish needed alone. To protect Trish’s interests, a Conservatorship was established, with Cathy serving as the Conservator and Power of Attorney (POA).
The Financial Challenge: Funding 24/7 Care
Trish only owed $85,000 on her $640,000 home, but her Social Security wasn't enough to cover the daily in-home care she now required. Cathy needed a way to tap into Trish’s home equity to fund this care without adding a new monthly bill to the mix.
She reached out to Kim Dodge and Cheryl Teigen to see if a reverse mortgage could provide the funding they needed while Trish was still under a court-ordered conservatorship.
The Solution: A Plan Approved by the Court
Kim and Cheryl didn't just provide a loan—they provided a roadmap for the legal process. They drafted clear loan options and a summary cover letter for the court overseeing the conservatorship. They explained the process, protections, and outcomes so clearly that the Judge signed off on the plan.
By using an FHA Reverse Mortgage, Trish and Cathy achieved two major goals:
Immediate Cash Flow: They refinanced the old mortgage. Instead of paying $1,152 every month to a lender, that money stayed in Trish's pocket to pay for her care.
A $215,000 Safety Net: In addition to paying off the old loan, Trish was granted a $215,000 Line of Credit. This fund is now available to pay for professional in-home care for as long as Trish can safely remain in her home.
What Happens if the Level of Care Changes?
If Trish ever needs to move into a dedicated memory care community, the plan remains solid. Cathy can draw the remaining funds from the Line of Credit to help Trish get settled.
When the home is eventually sold, the reverse mortgage is paid off just like any other loan. The remaining equity goes directly into the conservatorship account to continue providing for Trish’s needs. The lender does not own the home; it simply holds a lien, just like a conventional mortgage.
"Life can throw some hard curveballs. I am so thankful to have met Kim and Cheryl—they were knowledgeable, respectful, and thorough in seeing us through this process." — Cathy
What to Do Next
Surprises in health status are one of the biggest fears we face as we age. If you are struggling with the challenge of helping family through a conservatorship or health crisis, let Kim and Cheryl help you explore your options. We take the time to work with your legal team to ensure your family’s stability.
Contact Kim Dodge and Cheryl Teigen:
Telephone or Text: (503) 595-1600
Email: Hello@KimDodgeReverse.com
Licensed in Oregon & Washington, Kim Dodge, Branch Manager | NMLS 186099 | Cheryl Teigen, Loan Officer | NMLS 2089085 | Kim Dodge Reverse Mortgage, a dba of Zyng Mortgage, Inc. | NMLS 76801 | Equal Housing Opportunity | ConsumerAccess.org