There is a mortgage. She is 77. She is on Medicaid.
The answer depends on a number of factors - namely if there are other assets available for estate recovery. But since you say she is already on Medicaid any transfers of her property will still have to be made 5 years prior to escape the estate recovery. Based on this the remedies may be quite limited but it is worth a visit to an elder law attorney.
This is not legal advice nor intended to create an attorney-client relationship. The information provided here is informational in nature only. This attorney may not be licensed in the jurisdiction which you have a question about so the answer could be only general in nature. Visit Steve Zelinger's website: http://www.stevenzelinger.com/
Real Estate Attorney
Given the fact that she is already on medicaid more than likley means estate recovery will have a valid claim on the property. However, there are a few exceptions. It is my advise for you to seek an elder law attorney in your mother's state for further information.