My mom (72F) may lose house due to lawsuit and lien; not being transparent with me (38F) or sister (36F)

Background
- My mom (72F) lives in Alaska. My sister (36F) and I (38F) live in Arizona.
- She has current health needs, including needing her other hip replaced.
- She previously had significant financial resources (trust fund inheritance; at one point reportedly had millions of dollars).
- There is a long-standing pattern of financial instability and legal disputes over time.

Timeline of current situation
- Dec 2023: She had a kitchen fire (started while cooking). Insurance payout was approximately $135,000.
- She went out of state for 3 months for hip surgery recovery.
- During that time, a contractor repaired her home.
- Upon return, she disputed the work and refused to pay the contractor.
- A contractor lien was placed on the home ($70,000, though she reports inconsistent invoices).
- Instead of resolving that dispute, she hired additional contractors and spent further funds redoing work.

Current status
- She states she has spent approximately $80,000 on legal fees pursuing litigation.
- She reports having about $20,000 remaining plus a fully paid-off home.
- She refuses settlement options and insists trial is the only path.
- She refuses to allow my sister or me to speak directly with her attorney or financial advisor.
- She states she may lose the house around October and, if so, would “live in her car.”

Additional context
- Communication is inconsistent: periods of warmth followed by hostility or withdrawal.
- She has a pattern of providing incomplete or changing financial/legal details.
- She has a history of prolonged legal disputes.
- She has diagnosed bipolar disorder and borderline personality disorder (included only as context for communication patterns).

Our position
- My sister and I are willing to help financially and logistically within reason.
- We are not in a position to take on unknown or unlimited liability.
- We have offered assistance only under conditions of full transparency (documents, attorney communication, financial clarity).
- She is resistant to that level of transparency.

Additional concern
I am also concerned about potential downstream exposure for my sister and me if this escalates (e.g., being expected to cover debts, housing, or legal costs if she loses the home). We do have some financial means, but not enough to absorb an open-ended situation (my husband and I have a net worth of $3M, not sure of sister’s).

My concern
From the outside, there appear to be multiple off-ramps (settlement, structured repayment, equity-based options), but she is rejecting them in favor of litigation. That raises concern she may be heading toward a worst-case outcome while expecting family support afterward.

Questions
- How do people set boundaries when a parent refuses transparency but may become financially dependent later?
- At what point does involvement become enabling vs appropriate support?
- What should my next steps be regarding this?

I’m trying to stay objective and understand what is realistic versus emotional interpretation on my side. I know this post is long and I truly appreciate any responses or insight. Thank you.

TL;DR:
My 72-year-old mom is in a legal/financial dispute over a contractor lien on her paid-off home. She has spent most of a prior insurance payout and significant legal fees, refuses settlement options, and will not allow my sister or me access to documentation or her attorney. She may lose the home and is framing the outcome as possibly becoming homeless, while refusing structured help that requires transparency. My sister and I are trying to understand whether this is a rational legal/financial situation or a case where we should set firm boundaries to avoid being pulled into future financial responsibility.