Can $ earned from the sale of my mother's house be taken to pay for nursing home costs for when my dad was in the nursing home?

The money may disqualify her from low income housing. Check the program.

If your father was on Medicaid and a lien was placed on the home they will keep the lien in force. If she is applying for federal low income housing she may, as stated above, be disqualified.

Many low income programs also have asset limits. Just a suggestion to verify. If no lien was placed at death, she should be ok. Did she get a letter?

I agree with worriedinca. That money will be considered as income and will effect her indigent status. They will find out. My brother lives in low income housing and has to prove that he qualifies for housing annually. He has to provide receipts as part of his annual recertification & they do check bank account balances. It’s the government- they have access to everything.

I can't believe Medicaid didn't put a lean on the home after Dad's passing.
Are you assuming that Mom qualifies or has she been OK'd for low income housing knowing she was selling her home?

The sale of the house may change things. Low income housing is for those people living off SS and maybe a small pension.