Get a valuation on the property and determin fair market value for the property, as is. Then structure the deal with your mom so that she carries back a 50% second and then go out and get a mortgage for 50% of the value. You take title, rent it out and then your brother will be forced to move. Frame it for all parties as a good business decision for everyone - ‘win - win’.
Of course, mom might need to live with you temporarily but you must think creatively about all options if you want to do this deal. Take care of mom, give her cash, ask for her help in getting it done and your brother will have no choice but to leave. You might be surprised what your mom is willing to do if you propose a ‘win-win’ scenario.
As long as the number work then this is probably do-able. Good luck.
I am looking for advice as to how I could purchase my moms home? She is retired and is living in another state right now. My youngest brother lives there basically free with his girlfriend and my mom just keep letting him live there. She doesnt have the guts to kick them out. They have ruined the house by smoking in it and not keeping it clean and having parties there. My mom keeps trying to charge them rent but niether my brother or his girlfriend ahve jobs and they dont pay. Supposedley he is trying to turn his live around and get a job and be able to pay rent but I dont think he will since he has goten away without paying rent for the past two years. My mom really doesnt want o deal with it anymore but I cant afford to go out and buy her house the traditional way with a mortgage. My wife and I just bought our first home last year but it was about half the price of my moms house. Thats all we could get for a mortgage. My mom owes abouot $84,000 on her house becasue she kept re-mortgaging her house over the years and also with my dad passing away she couldnt keep up with his medical bills. Anyway she was going to put it on the market and at one time she had a guy offer her $110,000 for the house as it was. She had a real estate agent look at it recently and they told he she would be lucky to get maybee $75,000- $85,000 for it since it was in such bad shape. I want o be able to buy it from her and rent it out as there have been several people in the area said they would be interested in renting it but my mom is afraid to kick my brother out. Is ther any way I can buy here house from her without getting a loan or anything. Any help would be greatful thanks in advance.
Darin - sounds to me like this is a great ‘subject to’ deal. Have your mom deed your “company” the house for $10.00, assuming of course that she does not want any cash for it, and then you record the deed in a land trust. Tell her that you need 3 months to kick your sibling out and find a tenant/buyer (renter) and then you will start making payments to the bank. Of course there is a lot more to it, but this is the avenue I would pursue. No money from you and a win-win for your mom - of course your brother is getting shafted but sounds like he’s got it coming anyway.
If the mortgage amount is about the same as the value of the house, you could buy it on a Contract for Deed and leave the deed and the mortgage in her name, but you take over the payments and the responsibility for the expenses. Then kick out your brother, fix the place up and resell or rent to someone else.