My Dad is on a medicaid ward in a nursing home and his home is about to be sold after being foreclosed. Will he lose his benefits for payment to the nursing home? I saw a similar question on this site but the answers are four years old and I know things change .

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There will be an issue for dad to deal with post foreclosure.
Whatever the amount of the outstanding mortgage plus interest, fees & whatever else mortgage holder can tack on will be written off. That means dad will get a 1099-C Cancellation of Debt for the full amount written off. IRS gets the 1099-C too. 1099 are supposed to be issued by end of Jan & is taxable income. TAXABLE INCOME. (If foreclosure ends up close to dec, 2017, could delay the 1090-c to 2018 tax year)

For those on NH Medicaid, 1099-c can poses 2 issues:
- as it's taxable income, IRS is fully expecting $ to be paid for taxes due. Dad, if on Medicaid, is basically impoverished so no $ for taxes. But he gets SS & IRS as a super-creditor can attach his SS income to pay off taxes owed. If IRS does attach, then dad cannot pay the required by Medicaid monthly co-pay to the NH.
- and for more fun in this, as it's income reported, another issue could surface if dads state does an IRS match up & his income / asset will be over the allowed amount for Medicaid eligibility due to the 1099 $$$.

The solution will be for dad to file 1040 filing & does IRS Form 982, Reduction of Tax Attributes. It's not imo a DIY or TurboTax/Quick books filing. You need a tax pro or CPA. Totally sticky. Basically what they do is get the 982 to zero out so no taxes. Save any house expense documents as CPA may be able to use them to do the offsets.

If dad walked on other debt, like credit cards, they too can issue 1099-C. Any business can issue 1099-C if amount is over $ 600.00 and they are writing it off their taxes. 

If your funds are tight for DPOA expenses & dads monthly income is directly paid to the NH, you may want to access the monthly personal needs allowance fund the NH has for him to use to pay for the CPA next March/April. 
Helpful Answer (1)

Foreclosing on a house will not give your dad any money. The bank takes ownership of the property and sells it themselves. This should not cause a problem with medicaid.
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