Mother-in-laws home and our responsibility with it.

My mother in law has been in the hospital or rehab since 12/12/12. She owns her own home in Delaware. She has no insurance. She wants to go home, but the house is unlivable (she is a hoarder, and house is in terrible disrepair) Since she has no will, and is the only one on the deed, what happens to her house if she is placed permanently in nursing home? Do we have any responsibility for any of it? Nursing home is trying to tell her son that we should already have the house on the market. (or Medicaid wont even help her) But as i said the house is so bad, we dont want to go in it. And cannot afford to pay someone.