My mother was in an assisted living facility and receiving Aid & Attendance. After a few years, her house needed to be sold to continue to pay the additional due to keep her in the assisted living facility. The VA was not notified that the house was sold. After 3 years of using the money to keep her at the assisted living facility, she ran out of money and had to move in with me.
On the VA.GOV website, go to the pension rate tables for examples of A&A calculations. A&A is basically determined by medical costs exceeding income. Assets do come into play on an individual basis. Again, see a lawyer. A few VSOs at American Legion or VFW may help but do not know the real legal issues. Good luck to you and your mother.
Maybe you should have applied for Medicaid that would have allowed her to stay in the facility she was in. But that does not answer your question.....
I would contact an Elder Law Attorney, one that knows the "in's and out's" or the VA and see what the ramifications of this are.