Quit Claim Deeds and Refinancing

[Jacqueline Christina Johnson]

New to the area of RE. So please bear with me. We live in California and our family friend is an Agent selling a home in California.  The buyer is currently backing out of the deal due to the COVID019 Pandemic and their personal matters.  The Sellers have already purchased a home out of state and at this point, is willing to transfer the title to my husband and me, because they know we have been looking for a home.  Our family friend is saying that we can easily use a Quit Claim Deed to transfer the title but my husband is extremely cautioned and wants proof that we are not walking into a trap with a Quit Claim Deed, hence why I am reaching out on this platform. If we use a Quit Claim Deed and/or Warranty Deed, when can we refinance the property to place the title in our name with a potentially lower interest rate?    Back Story:  The home still has a mortgage on it and we would, of course, pay the mortgage to make sure the seller's name is intact.  We just cant qualify at this time for a 500k loan but in two years we will be able to, so we figured by doing this, this could not only help the sellers and us.

[Ellis San Jose]

Make sure you get title insurance & a Grant Deed from the seller.  There are no warranty deeds in California. Use a real estate attorney to advise you on the process. Speak to a mortgage broker now about your situation & they will tell you which programs are available to you.