Mom went into a nursing home.Will state take house from us?

Also ask legal about how the mortgage payments you are paying on moms mortgage can be dealt with. Right now you have no standing on ownership on the home, it's owned by the mortgage company & they don't care who pays as long as payment received. It would be awful if the caregiver exemption is denied and house had to be sold with all proceeds going to MERP and you have no claim on moms estate for mortgage payments.

You need to find out how the caregiver exemption is done for your states Medicaid program by your elder law attorney. Some states MERP require a letter from their MD or a social worker who will do and sign off a letter as to what caregiving required for the time period on letterhead with their state license #.. If they are now in a NH and been a while there, then their old MD may not be inclined to do this type of legally binding document once mom dies.....

I'd talk to an elder law attorney. If you took care of her for 2 years, preventing her from going into a nursing home earlier than she did, the house may qualify for an exemption.