If my parent is on another mortgage and deed can he continue to qualify for medical assistance?

Ron, if Dad is going to use Medicaid to pay for his nursing home care, Medicaid would want Dad to "spend down" the $60k he would get from his first house. The spend down can only be used for things for Dad. Your State can give you examples on what they accept for spending down.

Or Dad can "self-pay" for the first few months at the nursing home, then Medicaid will kick in after that.

Now that Dad is on your Deed, Medicaid would put a lien on 1/3 of the house assuming both you and your spouse are both on that Deed, along with Dad.

Ron, I believe you need to clarify your question. Are you seeking Medicaid eligibility rules for your state? You may contact the dept. of human services or office of aging if that is the case.
Are you asking about medical assistance -- like health insurance? Or long term care for the nursing home? Can you clarify how the $60,000 net from the sale of his home went to $35,000? If he owns a piece of your home, then that is an asset of his as well.

Bumping up.