Can Medicaid take a home after it has been sold if the seller ends up in a nursing home within the 5-yr time frame?

He has to sell the house at Market Value. The proceeds need to be spent on him. That could be an apt, a AL or LTC.

If the house is not sold at Market Value, then Uncle could be penalized for the difference in the Market Value and what he received. Same if he gave away any of the proceeds, he will be penalized.

Medicaid does not take houses.

He can sell his house, he can't give money away. Any caregiving needs to be paid by check or e-pay to show that the money was spent for care or on himself. No large gifts or cash presents, those could potentially cause a penalty period.

If he sold the house before he applied for Medicaid he wouldn't own a house for them to recover money from, what you were told doesn't even make any sense.

You heard wrong. Medicaid doesn’t take homes. If he sells the house, Medicaid will not go after the house if he goes in to a nursing home. He can sell the house and use the money to pay for his care. And again Medicaid will not attach a lein to the house after it’s sold.