Need Help With a Family Dispute

[Thomas Hansen]

Hi all, 

While I have read a book by Brandon Turner, I am not very knowledgable about the real estate market. My mother isn't either and her and my dad have a very tough time communicating with each other. I'm not on good terms with my father so I can't really get the info from him either. I hope I can provide as many details as necessary, but mainly, I just want to know what my mom needs to think about and understand in making this decision. 

Here are the facts:

My dad's mom has owned the house that we have lived in for the past 20 years. We have paid rent to her monthly and from what I understand, the rent has been a fair value so any considerations about inheritance are still split evenly. My grandparents, I believe, want to split this house between my dad and my uncle (when the time comes). For now, my grandma just wants to get the house out of her name. Thus, since you can't just gift someone a house, my dad is talking to my mom about buying the house from slightly under fair value. However, the actual value that gets split between my dad and uncle has not been agreed upon yet. 

What my dad is asking my mom to do now is buy the house and each pay the mortgage with a 20% down payment. However, this would require her to hand over her nest egg, all of her cash and some of her 401K to purchase the house. She wants to fully understand the situation but can't seem to get my dad to clearly give it to her. It's not that he doesn't want to give her the info, I don't think, just that there is a clear disconnect in communication (I have the same thing with my dad). 

What my mom wants to know is how she will get her money back. If 50% will be inherited at a future date by her husband and her name will be on a mortgage for most of the fair value, what is a good decision and how can she recoup her nest egg. You pay a lot of interest in mortgages so she wants to understand the positives and what kind of questions she needs answered before such a big investment. Like she has no idea what will happen when the house gets sold down the road. How much does she get, how much does my Uncle get, etc. My mom just wants to make sure that she isn't getting played and needs to understand all the pros and cons. 

I know some of these questions cannot be answered because I don't have all the facts and some of the numbers are just not set yet. Just some guidance on how to approach my dad and what kind of questions my mom needs answered before making this decision would be greatly appreciated. If you have any questions or want more details, please feel free to ask.