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The state has removed my mother's homestead exemption from her house, because the house has been vacant for 6 years. She has been in a nursing home for the past 6 years on Medicaid. She has been able to pay the taxes and house insurance until this happened. Now she can no longer afford to pay the taxes, which will more than double now without the exemption. Should we or can we sell the house and who should the money go to?

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All the proceeds from the sale of her house would have to go to pay for her care. Medicaid has to be notified of her income from the sale, and they would expect her to spend it down or repay them for her care. If they already have a lien on the house, they basically own the whole thing.
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