My Mother has a reverse mortgage on her home and is now going into long term care. She has Medicare and AARP. Does the house have to be sold?

The answer to this is probably going to depend on the terms of the Reverse Mortgage.  Does it require pay off if mother is no longer living in the house?  Will your mother be returning to her house from long term care?  Different lenders treat this situation differently.  In my experience as long as a doctor is not stating that your mother will never return to her home, the home does not have to be sold.  However, you should carefully weigh the carrying costs of the property against the potentially proceeds.  Can you afford to keep the house, and pay for your mother's care in the facility?  If not, the house should be sold.  Keep in mind that reverse mortgages are "non-recourse" loans so if the potential sales price of the house is less than the reverse mortgage, don't be concerned.  the lender cannot come back after you or your mother to make up the difference.