"My dad was paying for my brothers house. My brother wanted the house in his name but my dad wanted to keep it in his own name "
Since when do you get a house in your name when you aren't paying for it? I'm on Dad's side here.
"My brother was upset about this and they had a little fight but my dad continued to pay for it even though my brother NEVER talked to him after this."
If Dad was doing this as a way of being a loving father helping a son, then he should have cut it off when Son stopped talking to him.
"Then one day my dad found out my brother wasn't living in the house... instead he was renting it out and keeping the money."
So, Son was getting a house for free, Dad's paying for it, and Son rents it out to sub-tenants and turns a tidy profit of his own. Wow.
"Now my dad is hurt and my brother is pissed. "
I'd be hurt, too. I'm totally on Dad's side here. Son is an idiot.
"I talked to my brother and he feels hurt and betrayed. Like my dad was trying to just help himself and not my brother. :scratches head:"
As if your brother wasn't just trying to help himself. Yeah, he helped himself to a tidy profit at his father's expense, and without his father's knowledge nor consent.
"I talked to my dad and he's fed up. He tries and tries and gets nothing in return. Not even a happy holidays."
I'm with Dad totally. Tell him he has my sympathies.
Money comes with strings. The "string" to your father's money paying for the house is that Son would live there. Son took the money, and actually rented out the house for a profit and broke the "string".
" after I blew up on him over the situation...."
Sailors would have learned new dirty words had they listened to me blow up like that.