@Jeremy Clarke I think I'm missing a step, if she's owned it for 30 years how is it almost upside down?  

In your post you say that Trump assumed the loan when he bought the property but mention in your next sentence that the bank didn't know about it.This means that Trump bought the house "subject to" the existing deed of trust without the bank's permission.When a person "assumes" a loan, they are getting permission from the lender to step into the borrower's shoes to take over the loan. 

At that point you have a general partnership and 1065 obligation.If you're doing that, it may be advantageous to take it one step further, form an LLC and write your mother into the operating agreement as the functional equivalent of a limited partner. 

@Keith Meyer The TIC interest that your parents own should receive the step up in basis. 

I need some guidance on what the next steps should be.

If you just want to purchase a contract on an REO from him that's one thing, though he also messed that first step up and didn't submit paperwork to our lawyer for the closing.

Perhaps your first step is buy your primary first 3.bed / 2 bath SFH in the best neighborhood you can afford.

From there we have baby stepped our way to where we are today!

@santos collantes after listening to the BP pod cast 20, the the i got the most out of it was GET OF YOUR DUFF and do something to make something happen, and just reading and taking actionable steps.

One step at a time and you'll get there!