Any advice selling mom's home with reverse mortgage while she'is in a nursing home?

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mom owes 37,000 to reverse mortgage company, they say its worth 54,000. County appraisal say its worth 46,000. I had it appraised by federal certified appraiser and he said its worth 33,000. Mom is in nursing home , if I sell it for what it owed to RMC and no profit is made, will it come back as being sold under fair market value and be considered a gift?

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any help is appreciated
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She is medicaid pending. She went in around the middle of April and I have paid partial for April and full for the last two months. Is the actual appraisal from the certified appraiser the fair market value? The RMC originally was for around the 46k then last year bumped it up to 54k. As far as I know they have never seen the house to even give it an appraisel. The house is in poor condition and needs a lot of work and money to get it even around the 50k mark. I have a cousin that is willing to purchase and pay off the loan (37k) , and I dont want to make any equity off the sale of the house because of medicaid.
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ConfusedinAR, is Medicaid involved with helping pay for your Mom's care at the nursing home? If, yes, then you would need to sell the house for the market value.

Also with a Reverse Mortgage, if Mom has been in a skilled facility for going on one year, then the Reverse Mortgage will want their money back immediately. So you would need to sell. I know you probably would like to get out from under this, because keeping a vacant house maintained is very time consuming, unless it is a condo, then there are those monthly condo fees.

The Reverse Mortgage company said the house is worth $54k, is that a current appraisal or was that the appraisal back when your Mom got the Reverse Mortgage? Usually when someone refinances, the bank appraisals tend to be higher, which I feel is totally unfair to the home owner.

When you do sell, then any equity left over will need to be used for Mom's care, Medicaid may stop for a month or two until the money is used up, then Mom will be placed back on Medicaid.
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