Advice Needed on Financially Irresponsible Parents' Situation
So, some background: my parents were well off for most of my childhood until my Dad got laid off 10 years ago, and then my oldest brother tragically passed away. Since then, he has become a functioning alcoholic and works at Home Depot (it took him years of sitting at home before he even started doing that). My mom was a SAHM for most of my life and doesn't want to work. She does now, but only because she's forced to (my dad wasn't working for years/doesn't make much now at Home Depot), and she bitches about it every time I talk to her. She makes maybe $35k a year. During the years my dad wasn't working, they almost lost our childhood home to foreclosure (it was delayed due to COVID). However, they got lucky, and someone offered them a cash deal/private sale for over $700k. They had to pay off the mortgage and some major credit card debt but still had a decent amount of money left over. After selling the house, they moved in with my grandpa (mom's dad). My dad kept working at Home Depot, and they lived off that and the money they made from selling my childhood home.
Fast forward to today, and my grandpa has passed away, so my mom inherited the house. The house was paid off, but my grandpa took out an $80k HELOC that is around $66k now, and they've been responsible for paying it. However, I got a call from Mom two days ago saying they apparently have $100 to their name and they haven't paid the HELOC in four months… and now my grandpa's house is about to be foreclosed on too. I had to send her $2000 so that it wouldn't be foreclosed on. Trust me, I'm beyond annoyed I had to do that, but I would rather do that then lose the house because 1) my parents need somewhere to live and 2) eventually I will inherit the house and can sell it for a profit.
They have agreed to sell my grandpa’s house and move closer to me; however, with how much they'll have left over from the sale (my grandpa house is over 100 years old and needs a lot of work), it wouldn't be enough to buy a new home outright, so they would need to get approved for a small mortgage ($50k-$70k), which won't happen. Their credit is shot, and they've accumulated more credit card debt (due to them being horrible with budgeting and because of my other brother, who is an addict). I am considering co-signing or taking out the loan entirely in my name, and then they can pay me whatever the mortgage is (which shouldn't be much since the loan will be for a smaller amount). Then, later on, I can sell the house and profit $200k+.
My mom is trying to tell me I can list her on the house, just not my dad since he's a co-signer on my brother's student loans, and my brother doesn't pay them. However, given their credit card debt and the fact that my parents are married, I’m worried creditors would go after my mom's assets to pay off the loans.
Am I right that I should just buy the house myself (using some of the profits from the sale of my grandpa's house that my parents “gift me”) and keep my parents' names completely off it? That way, it's an actual investment property, and when I sell it for a profit years later, I won't have to worry about my parents' debt collectors coming after the proceeds?
Is there anything about this plan that I'm not thinking about that could come back and bite me in the butt? Has anyone else been in a similar situation, and do you have any advice?
I also think I'm going to tell them to stop making payments on my brother's student loans because what is the point if they can't afford it? My dad's credit is already horrible. They're both 62 and not in the best of health, so it probably won't be long before they start collecting Social Security (which thankfully should be a decent amount). They can't garnish Social Security for missed student loan payments, can they?