How do we transfer a deed to sell house without constituting as a gift?

My father has become 100% handicapped and has been severely ill and will have to go to a permanent care facility. He will not be able to return to our home which we have owned for 15 years.

One half of the deed to the house is in my mothers' name and the other half is in my fathers'. We don't have enough money to continue paying the mortgage and we don't want to keep it. (My mother lives in Michigan and I plan on moving to attend college) We bought the house in 1998 for $79,000 and we currently owe $56,000 to the lender on a 30 year mortgage and recently we had the property estimated at or above $120,000.

Our problem is that from what I've heard if dad just signs over the deed to the house to my mother or myself it will be construed as a gift and any money made from the profit of sale will go toward paying his medical bills and long term care etc.

Another problem is that we don't know that he could even transfer it to my mother because she is retired and living only on $600 mo. social security, and I am physically unable to work at the present time. So the mortgage company may not be inclined to allow us ownership because my father's veteran's benefits is the income that pays the monthly mortgage.

We need to sell the house A. because we can't afford to keep it and B. because we need the money to make a fresh start, and finally get back on track.

My dad agrees that this is the necessary action we must take, yet we need to figure a way to get it done.

Please help me with this problem if you can! We can't afford a lawyer yet and we have a limited amount of time to figure out how to do this. Thank you!