Updated over 5 years ago on . Most recent reply
Quit Claim Deeds and Refinancing
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.
Most Popular Reply
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.