It can be a good way to pay off excess debit ..but rmebemer, you are basically putting your home up as the collateral ..you default on the loan and stop making payments and your condo belongs to the bank. You say that mom has paid her home off (if I'm reading this right), why doesn't she take a look at a reverse mortgage or take out a personal loan, putting her home up for collateral. I know you say she does not make much money, but you could possibly work with the bank and get her payments down where she could manage them.