Tenants by the Entirety is the same as Husband and Wife.
If the spouse was in a nursing home, there could be a problem for the next 5 years. Fraudulent transfer could occur should there be any amounts due to a nursing home and failure to pay. However, this does NOT apply for a primary residence if the sale (transfer) shows full consideration. No consideration exists so the fraudulent conveyance could occur. With me here? 
It's assumed the POA is durable which is normal based on the circumstances. Problem is, the wife took title to herself using the POA. This could mean the real property is now unmarketable title. She would have to substantiate her claim to the property as well as an affidavit from a non-blood affiant. 
Basically, it appears she may be forced to file probate papers prior to any sale on the property which forces her to file federal estate papers (if the estate is valued over 600K). Looks like she wanted to avoid taxes but did it incorrectly. This could show a flag on her tax papers which could spark an audit.
(licensed in PA)