Medicaid Asset Recovery - Gift Deed - What now?

[Mike]

On 10-01-2005 my mother transferred her real estate (home) via gift deed to me (I'm an only child, 64 yers of age)Mom was in a nursing home from 08-25-06 until she passed away on 12-17-07.First I received the normal questionaire (packet) from the Texas Department of Aging and Disability Services about 60 days after mom's death. I completed it and returned it immediately.The second correspondence from them was 08-21-2008 stating that no probate estate has been opened yet, and if I don't start proceedings, then the state will begin then. (Note: the only asset was the real estate (home), so I don't see a need to probate anything!) I called them, and they said their records indicated that the real estate was in my mother's name, that they were unaware of a gift deed, and asked that I fax it to them. I faxed it immediately, and then talked to a clerk that verified receiving it, and she said it appeared to her that the claim needs to be dropped, but that it would be referred to her supervisor and that I should expect a letter stating they were dropping the issue within 2 or 3 weeks. Needless to say I have received nothing, and can not even get a phone call returned.The only other point I will make is that I lived in the house for over a year before my mother passed away, but only have 7 months of bank records, and I still live there today as this is the only residence I own.Any ideas/opinions/suggestions of where I stand or what I should do on this issue would be greatly appreciated.