Traditionally, home equity can be "extracted" in a number of ways: cash-out refinances, HELOCs, or Home Equity Loans. All of these allow you to either directly or indirectly utilize the equity built up on a home. However, all of these mechanisms require a homeowner to be in good standing with their lender and, typically, have decent credit.
As a thought experiment, I wondered if there were any tools a homeowner could use if they could no longer make their mortgage payments, but had a substantial amount of equity. I'm picturing something like a "reverse-mortgage" - where the lender simply increases your mortgage amount in lieu of payments (up to a "safe" margin, like 80% of the home value - at which point they'd move to normal foreclosure procedures). Does this exist or are there any financial mechanisms like it?