Can you mother consider a strategic default on her house debt? If she's looking at debt she can't afford to pay off, bankruptcy is probably a decent option.
Real estate isn't going down here; thus, strategic default is not an option, but we probably could get some decent amount of money if we can get it sold and after we pay the mortgage to the bank (probably with some extra fee?). The problem is, that it takes lots of time to sell it here.
If she expects to be able to pay it back in the future, she could take a second mortgage against whatever equity she has in the house.
I'm not really sure this is applicable. Banks here work differently from those in USA or EU, they won't give you a loan 90% of the time if you got a mortgage on your hands. Sounds impossible? Well, people don't trust banks and banks don't trust people.
Thanks for advice anyway.
It would be helpful if you said where "here" is.
Sorry, but no. No hard feelings, please.
Not even the country? Certainly no hard feelings, but I think you would have gotten better answers.