Medicaid (Tenncare) Release on a courthouse steps foreclosure

[Bryan L.]

I hope someone can answer this.  I've asked 20 people locally and gotten 20 different answers.  Yes, I need to ask a local real estate attorney.  But here's the question.

There is a courthouse steps foreclosure auction coming up soon.  The previous owners passed away (that explains why the stopped making the payments).  I've done a title search at the courthouse and found nothing other than the mortgage lien that is being foreclosed.  HOWEVER, in TN (Tennessee) we have this thing called a Tenncare release.  Tenncare is our state version of medicaid.  If someone that is over the age of 55 dies, Tenncare can try to recover the expenses that were paid for nursing home care or whatever.  This particular owner was over 55.  Now the bank is foreclosing after he died.  I checked at the courthouse for a probate file and there is none.  There is one adult heir.  So, if I buy this house at the courthouse steps, could I potentially be getting a house with an issues since I do not have a Tenncare release?  The state says that they will mail me the paperwork in 10 days or so, but the auction is coming up in about 4 days with a non-refundable deposit due the day of the sale and no title guarantees.