Family property investment???

All takers welcomed on this one - My mother owns her home in South Mass. and it is worth about 300K (roughly). She owes about 60K on her existing loan. She plans on leaving it to my brother and I in the future but is having some problems making the payments now. Here is my question: How can my brother and I best serve her (and ourselves) finiacially in this situation? The three of us have talked about having my brother and I purchase the home from her on a 30 year loan, title it in our names (the brothers) and then make the payments for her. She would live in the home without a payment and we, the boys , would be making payments on a property that we own and would eventually sell. I am unsure of how we would generate a mortgage loan based on the fact that my mother wants to sell us the home for 0 and we (the brothers) want to minimize our monthly costs while allowing mom to live without a payment. Thanks in advance!!

First, I'd recommend you talk to a tax expert to see the best way to do this from a tax perspective. Forgetting about the tax aspects and all else being equal, I would suggest having Mom sign a regular Warranty Deed or Bargain & Sale Deed, depending on what the norm is in MA, with her deeding the house to you and your brother. Both you and your brother can each keep an original signed copy, or have the deed held by an escrow agent (but that will cost you money). Make sure BOTH of you have an original that can be filed, just in case any of you have a disagreement in the future. Hold the deed until Mom doesn't want the house anymore. At that time, either you or your brother could file the deed with your county court, and both of you would then be official owners.

In the meantime, just pay Mom's monthly mortgage bill for her. Nothing needs to be changed. You don't need a new mortgage, which will save you closing costs. You can both send your checks into Mom, and then she can cut a check to her mortgage company as usual, OR you and your brother can just send half made out directly to the mortgage company, send those checks to Mom, and she sends both of the checks in with her mortgage statement each month. The mortgage company doesn't care who's sending the checks, as long as they come in. Just make sure you and your brother put the account number on each check.

The above would be the easiest and least costly way to take over the house and pay Mom's mortgage, pending the answer from your tax person. An alternative based closely on what you were suggesting above, would be for her to sell you and your brother the house for what's still owed (she can't sell it for $0 if she owes $60K, the bank will require that $60K upon closing). At that point the deed gets filed, you and your brother own the home, and you both are responsible for paying the mortgage you have in your names, which could be a 30-year if that's what you want. You will need to pay closing fees and other fees from the bank this way though.

Good luck!

If you can afford to cover her payment now, just do that. What you have described doesn't sound like it saves you money on a monthly basis, and it screws up the tax scenario for you and your brother.
If you can't afford that, she might need to refinance, and use or invest the proceeds to live on. That will reduce or eliminate your eventual inheritance, but making sure your mother's cared for needs to be the first priority, right? Also, she could refinance the $60k for a longer period, and reduce her monthly payment, although that would cost more in interest.

Simple. Either make the payments for her or you and your brother purchase the home, make the payments and let her live there. quick and simple.