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She co-owns a house with my sister and I and has a car but it's not paid for. She has no other assets except SS and dad's pension. My dad passed away but was on Medicaid. His name was not on the house for 10 years. Can my mom sell the house to pay for her nursing home care? Do we apply for Medicaid for Mom while she is still in rehab mode?

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You and your sister would be better advised by an Elder Care lawyer familiar with the laws for Medicaid in your state. Honestly, it's money well spent.
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I have this same question. @ Holly 2018. My father went into a nursing home for "rehab" as well but he did not get better. He is now back at home because my mom was so upset with the care he received at the facility. I hope everything goes well for your mom with her rehab treatment. I don't know how often you can visit the rehab facility but if you will be there on a daily basis, I would keep a close eye on on the care and rehab they are giving her. My father did not receive anywhere near the physical therapy we were promised. I am hoping for the best for you and your family but what I am learning in this process is that you need to be really hands on and proactive.
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Holly, this is what I'd suggest:

1. Rehabs typically hold care conferences within a week or so after admission. PT, OT and a SW attend; depending on the sophistication of the facility, other disciplines may attend also.

Proposed treatment and goals are advised so family can be aware of the plans. At this time you would raise the issue of whether or not the goals are to return your mother to the level of physicality and living status (such as independence) that existed before whatever brought her to rehab.

2. If the goals are for return to previous levels, then just ask how to keep in touch, or help, and be aware of how she's progressing while she's there. There will be another care conference before discharge, but you're wise to be pre-planning now.

3. Also ask about home care. Assuming she has Medicare, it will pay for typically about a month of intermittent home care, for PT, OT, speech therapy if appropriate, and a nurse. Typically a SW and Aide are available if you want them.

Again, this home care level would have goals, determined by the nurse and therapists. Ask again what these goals are; you should be made aware of them and understand them completely (sometimes the care team is vague about these).

4. If the rehab staff feel that she'll need a higher level of placement, ask the social worker to begin working with you not only to find a placement but to fund it. But also ask for recommendations, and do your own research if you need to consider a facility.

5. If Medicaid is recommended, do ask the SW to help you apply, and ASAP.

Good luck. Please keep us up to date and let us know how this progresses for you and your mother, and I hope her rehab is very successful.
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