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property aggreement

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how good is a verbal aggreement between family members in California? my grandmother and mother owned two houses together in joint tenancy. my grandmother gave all her interest in the houses to my mother. (years before her death) Medi-cal (state funded health insurance)wants her to pay them back by taking a loan on the houses or sell them. We thought having a house in joint tenancy ment that it goes to the partner automatically. This is one of the reasons she never changed the title on the houses. They also said they would put a lein on the house. Her life style has not changed and it is too hard to give all the details to do a hardship.(they want all kinds of information) our families are living in two houses that we have worked hard to keep. We have a hard enough time keeping afloat and we have had the houses since 1938. Any advice would be appreciated.

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