Is it common practice for a borrower to deposit a large cash amount in the lenders bank account for up to 30 days to "verify assets" while the loan is being processed?
This sounds extremely "fishy" to me. That is typically not how a lender would verify someone's assets.

Can our house ever be foreclosed wth an FHA Loan?
It's possible to even have a FHA Reverse Mortgage and be foreclosed upon. If you do not maintain the taxes and homeowners insurance you could run the risk of foreclosure. However you could not be foreclosed upon because of non payment, since there is no payments on a Reverse Mortgage.

Does it cost to take equity out of my home?
Although there are age and equity requirements a Revrese Mortgage may be an option. There are significant costs with a reverse loan but there are no payments or income requirements. Minimum age is 62. Feel free to call if you have any further questions. Rick G. 951-634-3443

What might delay approval of my loan?
Common causes are typically incomplete or illegible paperwork. Occasionally if a home needs obvious repairs and it is noted on the appraisal it can delay the process. A little forethought prior to sending in the file or getting the appraisal completed can remedy most problems. Feel free to call if you...

Reverse Mortgage
Checking county records is not a precise way of indicating what is owed to a Reverse Mortgage Lender. They record a note equal to 150% of the appraised value of the home at the time the loan closed. There is no telling what the current balance is without contacting the lender. And they aren't going to...

Would e be able to do cash-out using no LTV limit of HARP2?
Even the Reverse Mortgage option would be unavailable with your low equity position. Sorry.