Well if you are asking if the plan administrator checks on what you have done with the money, no they do not. You will have to claim the withdrawal on your taxes, and possibly provide the documentation to support it.
You do have to sign a form acknowledging you are using the funds for an approved hardship reason, primary residence foreclosure being one of them.
That being said, I as a account rep for a 401 administrator had thousands of people requests funds for "Medical bills", when you know darn well that is not what they are being used for. As long as the administrator has the documentation that you qualify, they have no liability beyond that point. You are eligible, that is all they care about.

Not all 401k plans process withdrawals in a speedy manner. Before you even consider this, your first step should find out just how realistic it would be to have the funds available to in time to stop your foreclosures. Hardship may give you access to 401k funds, but you'll still have to pay the taxes and penalty on the early withdrawal, this is going to cost you.

Just to be clear, you stopped paying your mortgage and figured you'd just walk away from that debt, and move into mom's former home once probate was done?

Even if this was the plan, you certainly should have kept up with your to-be inherited home's mortgage and taxes if there weren't funds in the estate to do so, perhaps with the funds you used to pay for your own mortgage. That is, unless medicare is looking to be repaid from the funds from the sale of your mother's home.

As a former financial service rep, who has processed thousands of 401(k), 403(b) hardship withdraw application I can stated that each company has there own rules and regulations that will pertain to a hardship withdraw application. You do need to send in supporting documentation such
as the most recent mortgage statement and also the paperwork showing that the mortgage foreclosure has started. As a general rule a hardship withdraw is applicable only to the prevention
of forecluse to your primary residence, not your 2nd home or investement property.

Your tax consequences are the following; if you withdraw from a retirement account say a 50K withdraw amount, your withdrawn amount will be added to your earned income amount for the year
of the withdraw. As in this example if you earned 40K during the year your reported income will be
90K. You also have to pay a 20% federal tax penalty, state taxes, and in most cases a 10% penality
fee. So if you take our 50K example; 50,0000 X .30% = 15,000. Your net withdraw amount will be $35,000. Good luck in your situation