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Will they seize her home? I cannot care for her in my home because I am disabled.

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Seize the home, no. You can rent it out, but the rental income goes to her care. Medicaid will not attempt any recovery while she is alive. They will expect to recover assets from her estate, and those rules vary widely from state to state. A good nursing home will help you sort out the financials.
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Under Medicaid in most situations, their home is an exempt asset. So they can keep the home & a car in theory for the rest of their life. Medicaid is not in the real estate business, they will not seize a home.

BUT Medicaid requires a copay or "SOC" (share of cost) of all their monthly income to be paid to the NH less a small personal needs allowance that ranges by state from $30-90. There will realistically not be ANY of moms $ to ever pay on house items. Someone within family will need to pay for insurance, taxes, utilities etc on the empty house for the rest of moms life. And upon moms death, the house becomes nonexempt asset and subject to a claim or lien by MERP (Medicaid estate recovery program).

If family can afford afford all on the house till whenever & has a reasonable expectation of a MERP exemption, exclusion or hardship and can do whatever is needed for those, then keeping the house makes sense. But for most this is not at all realistic, so the house is put up for sale. The terms required by Medicaid are such that family has to sell the home for most.

If you find this is what you are going to do, then try to get Medicaid to allow for a diversion of some of moms SOC to be able to pay for utilities, etc on the house for the period of time it is listed with a Realtor (usually a 6 month listing agreement). Otherwise you will have to pay for the whatever's on moms house while on the market. This could run into quite a bit $$ too as heat or AC has to be on 24/7 and yard kept up to make the property market competitive.

In dealing with the mouse maze that is Medicaid, one thing that comes up over & over is families total surprise on the copay /SOC. the states do not do a good job on explaining what the SOC requires.
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